Since the financial crisis led the American economy off a cliff last fall, Fed Chairman Ben Bernanke has been trying to drive it the quick way back up the mountain. Lately though, as he realizes the quickest way is often the most dangerous, he
Italian officials found trillion of allegedly fake US Treasury bonds. The bonds were found hidden in makeshift compartments of three safety deposit boxes in Zurich. And to put it in perspective- 6 trillion dollars is almost half of the US’s public debt. An Italian anti-mafia task force arrested eight people in connection with the probe, dubbed “Operation Vulcanica,” The US embassy in Rome has examined the securities dated 1934, which had a nominal value of billion apiece. The Embassy tweeted, “Thanks to Italian authorities for the seizure of fictitious bonds for trillion,”
Debt instruments that companies, municipalities and governments issue in order to raise funds for financing their capital outlay are known as Bonds. It is a type of a formal contract to payback the debt with interest within a certain interval of time. It is basically like a loan where on one hand the issuer is the borrower and the holder is the lender and the coupon is the interest. It helps a borrower in finance of long- term investments by providing external funds or in case of government bonds to finance current expenditure.
A bond is a debt security that is run by a government or agency. It usually lasts for long periods of time, or durations, which will take longer to mature. There are many important bond definitions that you should know.
The first bond definition you need to know is that of a bond fund. This is a type of mutual fund where you invest in bonds. You can invest in bonds of different values, including a baby bond that has a face value of less than a thousand dollars. Also, your bond will feature a Committee on Uniform Security Identification Procedure number for identification.
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