Types of rating - debt rating, Financial Management

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

  1. Long-term Debt Instruments: Debt obligations for a period over three years are known as long-term debt instruments. They are Debentures/Bonds and Preference shares.

  2. Medium-term Debt Instruments: Medium-term obligations range for a period between 1-3 years. The method of raising such funds will either be a debt issue or through the "Fixed Deposit" program of the companies.

  3. Short-term Debt Instruments: Debt obligations for a short period payable within one year or less than one year are covered under money market instruments. They are Commercial Papers and Certificates of Deposits.

Posted Date: 9/11/2012 1:28:03 AM | Location : United States







Related Discussions:- Types of rating - debt rating, Assignment Help, Ask Question on Types of rating - debt rating, Get Answer, Expert's Help, Types of rating - debt rating Discussions

Write discussion on Types of rating - debt rating
Your posts are moderated
Related Questions
Question 1: (a) Advise a risk averse individual whether to invest his capital in a money market or capital market. Justify your answer. (b) Explain five types of Money marke

Nominal spread of a non-treasury bond can be defined as the difference between the bond's yield and the yield to maturity of a benchmark treasury coupon security.

Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of

Given that risk-averse investors demand more return for taking on more risk when they invest, how much more return is appropriate for, say, a share of common stock, than is appropr

Question 1: Give an account of the role of governmental bodies and officials in the making of public policies. Question 2: What do you understand by the term "Governmen

All other things held constant, how would the market price of a bond be affected if coupon interest payments were made semiannually instead of annually? The majority of bonds i

Define the both cash and share exchange Generally both cash and share exchange are used to make the offer more attractive. Other forms of consideration include: Paper consid

Q. Explain Inventory approach to cash management? This method analysis cash in the same way as engine inventory such that EOQ models may be employed. In such conditions cash

Variance Analysis: In its commonest form variance analysis is the process of comparing budgeted financial performance (or financial goals) against actual financial performance.

conflicts between shareholders and government in agency relationship