Glossary · from the DESK dictionary
Bond
A fixed-income security through which issuers (governments, companies) borrow money.
In plain words
Buying a bond means lending money to the issuer in exchange for regular interest payments and repayment of face value at the end.
In more detail
Bonds differ in maturity, issuer creditworthiness, coupon type (fixed/floating), and other features. Their market price moves inversely to market interest rates.
Example
A 10-year German government bond with a 3% coupon pays 3% of face value annually plus repayment at maturity.
What it means for traders
A fundamental asset class and a central tool for diversification and income generation.
Common pitfalls
Interest rate risk (price losses when rates rise) and credit risk (issuer default).
Related terms
Accreted Value · Agency Bond · Amortizable Bond Premium · Amortization Schedule · At Par · Bearer Bond · Bond Covenant · Bond Discount · Bond ETF · Bond Futures · Bond Market · Bond Power · Bond Quote · Bond Swap · Bond Yield · Bondholder · Bonds Payable · Convertible Bond · Corporate Bond · Day-Count Convention · Debenture · Debt Instrument · Defeasance · Duration · Coupon · Rating (Credit Rating) · Yield · Structured Product
From the DESK dictionary. For information only, not investment advice.
This is one page of many.
- The DESK dictionary explains more than 9,400 market terms like this one, in English and German – searchable, sorted by topic and difficulty, with favourites.
- Plus the Macro Terminal with more than 900 indicators per country, company pages and a weekly report.
Also open to read: Glossary A–Z · Free calculators · Weekly report archive
DESK is a research tool and not investment advice. Page generated: 2026-10-12.