Original issue discount debt (OID debt)

Similar financial terms

Original maturity
Maturity at issue. For example, a five year note has an original maturity of 5 years; one year later it has a maturity of 4 years.

Original margin
The margin needed to cover a specific new position.

Original face value
The principal amount of the mortgage as of its issue date.

Original principal balance
The total amount of principal owed on a mortgage before any payments are made.

Rights issue
An new share issue to existing shareholders giving them the right to buy new shares at a predetermined price.

Issuance of "rights" to current shareholders allowing them to purchase additional shares,usually at a discount to market price. Shareholders who do not exercise these rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offerings are particularly common to c ...

Vanilla issue
A security issue that has no unusual features.

Unseasoned issue
Issue of a security for which there is no existing market.

Specific issues market
The market in which dealers reverse in securities they wish to short.

Small issues exemption
Securities issues that involve less than $1.5 million are not required to file a registration statement with the SEC. Instead, they are governed by Regulation A, for which only a brief offering statement is needed.

Secondary issue
A secondary issue is both a (a) procedure for selling blocks of seasoned issues of stocks or (b) more generally, the sale of already issued stock.

Seasoned new issue
A new issue of stock after the company's securities have previously been issued. A seasoned new issue of common stock can be made by using a cash offer or a rights offer.

Seasoned issue
Issue of a security for which there is an existing market.

Reopen an issue
The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue.

Presold issue
An issue that is sold out before the coupon announcement.

Oversubscribed issue
Investors are not able to buy all of the shares or bonds they want, so underwriters must allocate the shares or bonds among investors. This occurs when a new issue is underpriced or in great demand because of growth prospects.

New-issues market
The market in which a new issue of securities is first sold to investors.

Multiple-issuer pools
Under the GNMA-II program, pools formed through the aggregation of individual issuers' loan packages.

Benchmark issues
Also called on-the-run or current coupon issues or bellwether issues. In the secondary market, it's the most recently auctioned Treasury issues for each maturity.

Cheapest to deliver issue
The acceptable Treasury security with the highest implied repo rate; the rate that a seller of a futures contract can earn by buying an issue and then delivering it at the settlement date.

Current issue
In Treasury securities, the most recently auctioned issue. Trading is more active in current issues than in off-the-run issues.

Fiduciary issue
The fiduciary issue is the part of the issue of notes and coins that is not backed by gold. In the past bank notes were issued and were backed by gold. You could always redeem your notes and have gold back in exchange. However, the system quickly developed so that the value of notes issued exceeded the amount of gold. That part of the note issue in excess of the amount of gold was the fiduciary issue. In other words the amount of money issued on trust. Today the whole note issue is fiduciary.

Discount
A value lower than par value; the decreased market value of a bond resulting from its intrest rate and safety rating.

Discount rate
The loan intrest rate charged by the Federal Reserve Bank to its member banks.

Accretion (of a discount)
In portfolio accounting, a straight-line accumulation of capital gains on discount bond in anticipation of receipt of par at maturity.

Pure-discount bond
A bond that will make only one payment of principal and interest. Also called a zero-coupon bond or a single-payment bond.

Bank discount basis
A convention used for quoting bids and offers for treasury bills in terms of annualized yield , based on a 360-day year.

Cash discount
An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days.

Discount broker
A brokerage house featuring relatively low commission rates in comparison to a full-service broker.

Debtors
Amounts owing to the company, including the value of sales made under credit, where settlement or payment from the customer is still awaited.

Unsecured debt
Debt that does not identify specific assets that can be taken over by the debtholder in case of default.

Unfunded debt
Debt maturing within one year (short-term debt).

Trade debt
Accounts payable.

Total debt to equity ratio
A capitalization ratio comparing current liabilities plus long-term debt to shareholders' equity.

Subordinated debt
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.

Structured debt
Debt that has been customized for the buyer, often by incorporating unusual options.

Senior debt
Debt that, in the event of bankruptcy, must be repaid before subordinated debt receives any payment.

Secured debt
Debt that, in the event of default, has first claim on specified assets.

Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.

Long-term debt ratio
The ratio of long-term debt to total capitalization.

Long-term debt/capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.

Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.

Debt bomb
A default on debt and obligations by a major financial_institution that disrupts the stability of the economic system.

Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.