Category: Debt Instruments

  • What Is The Benefit Of Investing In Secured Bonds

    What Is The Benefit Of Investing In Secured Bonds

    Introduction Before we understand what is the benefit of investing in secured bonds, let’s take a quick minute to understand what are bonds / debt instruments. When a company wants to raise capital to expand its business, it has majorly two options: When the company takes loans as a means to raise capital from the…

  • How Do Market Linked Debentures (MLDs) Make Returns

    How Do Market Linked Debentures (MLDs) Make Returns

    What are Market Linked Debentures¬† Market-linked debentures, popularly called MLDs, are debt investment instruments. The returns on the investment are dependent on the performance of a specific market index rather than being fixed. These structured instruments typically only have one pay-out at maturity and no other monthly payments. This is because the returns earned from…

  • What Is The Advantage Of Investing In A Zero Coupon Bond

    What Is The Advantage Of Investing In A Zero Coupon Bond

    What is zero coupon bond Zero Coupon Bond is a type of bond issued to the investors with zero interest rate. The edge of investing in these bond is that they are issued on a value lower than the face value of the bond. Explanation with an example Imagine you are given an opportunity to…