Debt Security: A Comprehensive Overview
Debt security is a fundamental concept in the world of finance and investing. It refers to a financial instrument that represents a loan made by an investor to a borrower. These securities are a key component of the capital markets, allowing governments, municipalities, and corporations to raise funds for various purposes.
What Is a Debt Security?
A debt security is a fixed-income instrument that obligates the issuer (borrower) to pay the holder (lender or investor) a set amount of interest for a specified period and repay the principal at maturity. Essentially, it is a formal contra