Brain Dump

Government Securities

Tags
finance

Bonds issued by companies or governments to raise money. Investors purchase bonds at the face value and later get a return at a fixed interest (coupon) rate. Each bond has a maturity date indicating when the investor gets payed back the face value of the bond.

A negative bond yield is when an investor receives less money on return than they spent for the bond. This can be due to for eg. a recession.