Debt securities are tradable claims through which an entity raises funds and commits to repay investors under predetermined terms. Investor compensation can take the form of periodic interest, repayment above the purchase price, or both. The amount originally borrowed is typically returned on the maturity date. Instruments whose initial term exceeds twelve months are treated as long-term borrowing; shorter-term claims are generally categorized as money-market instruments. Statistical definitions may also cover debt issued through private placements.
Passende Formel
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.