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debt instrument

 

Definitions from WordNet

Noun debt instrument has 1 sense
  1. debt instrument, certificate of indebtedness - a written promise to repay a debt
    --1 is a kind of document
    --1 has particulars:
     cash equivalent; certificate of deposit, CD; note, promissory note, note of hand; floater; bond, bond certificate

Definitions from the Web

Debt Instrument

A debt instrument refers to a financial contract or obligation issued by a borrower, typically a government or a corporation, to raise capital. It represents a loan agreement in which the issuer promises to repay the borrowed amount with interest over a specified period of time.

Sense 1: Financial Contract

In this sense, a debt instrument is a legal agreement between a borrower and a lender. It outlines the terms and conditions of the loan, including the principal amount, interest rate, repayment schedule, and any collateral or guarantees provided.

Sample Sentence:

John invested in a government bond, a type of debt instrument, to secure a fixed income for his retirement.

Sense 2: Tradable Financial Security

In this sense, a debt instrument represents a tradable security that can be bought or sold in financial markets. It includes bonds, notes, debentures, and other fixed-income investments.

Sample Sentence:

The investor diversified her portfolio by purchasing various debt instruments, including corporate bonds and treasury bills.

Sense 3: local

In a local context, a debt instrument may refer to a specific type of loan or credit arrangement that is regionally prevalent or unique to a particular area.

Sample Sentence:

Obtaining a microfinance loan has become a popular debt instrument for small business owners in the local community.

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