Glossary: FI Module 04 — Corporate Issuers
| Term | Definition |
|---|---|
| Corporate bond | A bond issued by a corporation to raise capital; may be secured or unsecured |
| Debenture | An unsecured corporate bond backed only by the issuer’s general creditworthiness |
| Commercial paper (CP) | Short-term unsecured promissory note issued by corporations, typically with maturity ≤ 270 days |
| Medium-term note (MTN) | A corporate debt instrument issued continuously under a shelf registration, with maturities typically from 9 months to 30+ years |
| Syndicated loan | A loan provided by a group (syndicate) of lenders, structured and administered by one or more arranging banks |
| Secured bond | A bond backed by a pledge of specific assets as collateral |
| Unsecured bond | A bond backed only by the issuer’s general credit; no specific collateral |
| First mortgage bond | A bond secured by a first-priority lien on real property |
| Equipment trust certificate | A bond secured by specific equipment (e.g., aircraft, rolling stock) |
| Collateral trust bond | A bond secured by financial assets (stocks, bonds) held by a trustee |
See also: Bond Features, Credit Risk