Bonds & Fixed Income
3 terms
Sovereign Gold Bond
Bonds & Fixed Income
₹
A government security denominated in grams of gold, paying interest and redeeming at the prevailing gold price.
Redemption Value = Grams Held x Average Gold Price over the three business days before maturity
State Development Loan
Bonds & Fixed Income
qualitative
A dated security issued by an Indian state government to fund its own borrowing requirement.
Test: the issuer is a state government, and the security is issued through the Reserve Bank's auction process
Subordinated Debt
Bonds & Fixed Income
qualitative
Debt that ranks behind other debt for repayment if the borrower is wound up.
Repayment order: secured creditors, then senior unsecured, then subordinated, then hybrid capital, then equity