Fixed Income

Trustee for Bondholders

Definition

What is Trustee for Bondholders?

An independent party appointed to represent bondholders and enforce the bond documents.

Example in practice

The trustee acts when the issuer breaches a covenant.

Keep learning

A debt security through which an investor lends money to an issuer in return for promised payments.

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

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