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Information about Debenture

In finance, a debenture is a long-term debt instrument used by governments and large companies to obtain funds. It is similar to a bond except the securitization conditions are different. A debenture is usually unsecured in the sense that there are no liens or pledges on specific assets. It is however, secured by all properties not otherwise pledged. In the case of bankruptcy debenture holders are considered general creditors.

The advantage of debentures to the issuer is they leave specific assets burden free, and thereby leave them open for subsequent financing.

Debentures are generally freely transferrable by the debenture holder.

Debenture holders

In the United Kingdom debentures have frequently been used as a mechanism for raising funds to build or finance sports or leisure venues. Often these debentures pay little or no interest, but entitle the holder to privileges, usually tickets for the venue. For example, the All England Lawn Tennis and Croquet Club first issued debentures in 1920 in order to purchase the current premises in Wimbledon, London, and debenture issues take place every five years. The 2001-2005 debenture issue was priced at £2,000 each, with an additional premium of £18,000, and Value Added Tax of £3,150; holders of these debentures are entitled to a free seat in the Centre Court Stand for each day of the championships for five years, and have access to exclusive lounge and catering facilities. At the Royal Albert Hall debenture holders are known as members; they own rights to individual boxes, and are entitled to view almost all performances. In 2003 Box 70 was offered on the open market for £250,000 [1]. Other stadia financed through the issue of debentures include Millennium Stadium, Wembley Stadium, Arsenal, Twickenham Stadium, Lord's Cricket Ground, and Trent Bridge in Nottingham.'

Nomenclature

In practice the distinction between bond and debenture is not always maintained. Bonds are sometimes called debentures and vice-versa.

In some countries (notably the United Kingdom), the term debenture is also frequently used by the legal profession as shorthand for a security document which creates fixed and floating charges over all of the property of the chargor. This usage derives from the frequent inclusion of provisions for security interests in conventional debt instruments.

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 Bond market  
Fixed income | Bond | Debenture
Types of Bonds
By Issuer:Government bond | Sovereign bond | Agency bond
colspan="2" | Municipal bond | Corporate bond | Emerging market debt
By Payout:Fixed rate bond | Floating rate note | Zero coupon bond
colspan="2" | Inflation-indexed bond | Commercial paper | Accrual bond
colspan="2" | Auction rate security | High-yield debt | Convertible bond
colspan="2" | Mortgage-backed security | Asset-backed security
Derivatives
Bond option | Credit derivative | Credit default swap
Collateralized debt obligation | Collateralized mortgage obligation
Bond valuation
Pricing:Par value | Coupon | Clean price | Dirty price
colspan="2" | Accrued interest | Day count convention
Yield analysis:Nominal yield | Current yield | Yield to maturity
colspan="2" | Yield curve | Bond duration | Bond convexity
Credit analysis:Credit analysis | Credit risk
Spread analysis:Yield spread | Credit spread | Option adjusted spread
Interest rate models:Short rate models | Rendleman-Bartter | Vasicek
colspan="2" | Ho-Lee | Hull-White | Cox-Ingersoll-Ross | Chen
colspan="2" | Heath-Jarrow-Morton | Black-Derman-Toy
Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects.
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bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity.
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Securitization is a structured finance process in which assets, receivables or financial instruments are acquired, classified into pools, and offered as collateral for third-party investment.
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Property law
Part of the common law series
Acquisition of property
Gift  · Adverse possession  · Deed
Lost, mislaid, and abandoned property
Alienation  · Bailment  · License
Estates in land
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Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed.
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A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second
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worldwide view.


Contract Law
Part of the common law series
Contract
Contract formation
Offer and acceptance  · Mailbox rule
Mirror image rule  · Invitation to treat
Firm offer  · Consideration
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Motto
"Dieu et mon droit" [2]   (French)
"God and my right"
Anthem
"God Save the Queen" [3]
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The All England Lawn Tennis and Croquet Club is based at Wimbledon in the London Borough of Merton, at grid reference TQ242721 . It is best known as the venue for the Wimbledon Championships, the only Grand Slam tennis event still held on grass, but is also a private members club.
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Wimbledon


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Economic policy
Monetary policy
Central bank   Money supply
Fiscal policy
Spending   Deficit   Debt
Trade policy
Tariff   Trade agreement

Finance
Financial market
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Royal Albert Hall of Arts and Sciences is an arts venue dedicated to Queen Victoria's husband and consort, Prince Albert. It is situated in the Knightsbridge area of the City of Westminster, London, England.
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Wembley Stadium was a football stadium in Wembley, a suburb of north-west London, standing on the site now occupied by the new Wembley Stadium.

First known as the Empire Stadium
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Arsenal

Full name Arsenal Football Club
Nickname(s) The Gunners
Founded 1886 as Dial Square
Ground Emirates Stadium
Holloway
London
England
Capacity 60,432[1]
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Twickenham Stadium (usually known as just Twickenham or Twickers[1]) is a stadium located in Twickenham, a suburb of south-west London (in the historic county of Middlesex).
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Location: St John's Wood, London
Established: 1814
Seating Capacity: 30,000
Owner(s) M. C. C.
First Test Eng v Aus, July 21-23, 1884
Last Test Eng v Ind, July 19-23, 2007
First ODI Eng v Aus, August 26, 1972

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Location: Nottingham
Established: 1830's
Seating Capacity: 15,350
First Test v , June 1-3, 1899
Last Test v , July 27-31, 2007
First ODI v , August 31, 1974
Last ODI v  West Indies, July 7, 2007
Stands
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Nottingham

Arms of the Nottingham City Council
Location within England
Coordinates:
Sovereign state  United Kingdom
Constituent country
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Motto
"Dieu et mon droit" [2]   (French)
"God and my right"
Anthem
"God Save the Queen" [3]
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For the fish called "lawyer", see .
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person licensed to practice law.
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A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation (usually but not always the payment of a debt) which gives the beneficiary of the security interest certain preferential rights in relation
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A floating charge is a security interest over (typically but not necessarily) all of the assets of a company or a Limited Liability Partnership (LLP), which 'floats' until converted (subject to the terms of the charging instrument) by the chargee into a fixed charge; such
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A floating charge is a security interest over (typically but not necessarily) all of the assets of a company or a Limited Liability Partnership (LLP), which 'floats' until converted (subject to the terms of the charging instrument) by the chargee into a fixed charge; such
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A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation (usually but not always the payment of a debt) which gives the beneficiary of the security interest certain preferential rights in relation
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bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity.
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Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects.
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Gold exchange-traded funds (or GETFs) are special types of exchange-traded funds (ETFs) tracking the price of gold. Gold exchange-traded funds are traded on the major stock exchanges including London, Paris and New York.
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In finance, a convertible bond (or convertible debenture) is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio. It is a hybrid security with debt- and equity-like features.
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Topics in finance include:

Fundamental financial concepts

  • Finance an overview
  • Arbitrage
  • Capital (economics)

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