Bonds Ontology
type: Ontology
abstract: This ontology defines the basic concept of a bond and a number of bond variants including convertible and callable bonds. Medium term notes (MTNs) and debentures are also defined.
license: Copyright (c) 2016-2025 EDM Council, Inc. Copyright (c) 2018-2025 Object Management Group, Inc. Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the 'Software'), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED 'AS IS', WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE. See https://opensource.org/licenses/MIT.
imports: FunctionalEntities
imports: GovernmentEntities
imports: CorporateBodies
imports: Trusts
imports: Debt
imports: Guaranty
imports: FinancialInstruments
imports: FinancialServicesEntities
imports: FinancialProductsAndServices
imports: CurrencyAmount
imports: ISO4217-CurrencyCodes
imports: Agreements
imports: Contracts
imports: BusinessDates
imports: FinancialDates
imports: Occurrences
imports: Objectives
imports: Parties
imports: PaymentsAndSchedules
imports: Relations
imports: AnnotationVocabulary
imports: EconomicIndicators
imports: Indicators
imports: InterestRates
imports: DebtInstruments
imports: TradedShortTermDebt
imports: EquityInstruments
imports: SecuritiesIssuance
imports: SecuritiesListings
imports: Collections
imports: DatesAndTimes
imports: Documents
imports: Organizations
imports: QuantitiesAndUnits
imports: RegistrationAuthorities
imports: RolesAndCompositions
version IRI: Bonds
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of the ontology was modified to align the definition of 'bond with warrant' with the CFI definition (SEC-207).
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of the ontology was modified to replace additional content that is now available in the OMG Commons Ontology Library (Commons) v1.2 (FND-389).
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of the ontology was modified to replace concepts from additional FIBO FND ontologies with their counterparts added to the Commons Ontology Library (Commons) v1.1.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of the ontology was modified to replace concepts from several FIBO FND ontologies with their counterparts added to the Commons Ontology Library (Commons) v1.1.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of the ontology was modified to use the Commons Ontology Library (Commons) Annotation Vocabulary rather than the OMG's Specification Metadata vocabulary.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of this ontology was modified to add an optional restriction on bond for 'has series' (FBC-322).
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of this ontology was modified to move details regarding step schedules to the debt instruments ontology for broader use and deprecate the use of a 'coupon' schedule in favor of interest payment schedule, which is the more modern terminology, aligning with other uses of the related terms in FIBO (FBC-317).
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds.rdf version of this ontology was modified to use the Commons Ontology Library (Commons) rather than the OMG's Languages, Countries and Codes (LCC), eliminating redundancies in FIBO as appropriate.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to address text formatting hygiene issues.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to allow for variation in index-linked bonds, such as those whose interest payments vary with an index in addition to those that have a variable principal linked to an index and to make a number of corrections to the class hierarchy.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to eliminate a duplicate 'isBasedOn' property and replace it with the property of the same name in the debt ontology, to revise the inheritance hierarchy for bond conversion terms to reflect changes in the representation of redemption more generally, to reflect the move of redemption provision from debt to financial instruments, and eliminate circular and ambiguous definitions.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to eliminate duplication of concepts in LCC and eliminate a redundant superclass from RegularCouponSchedule.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to eliminate false positives in hygiene tests due to concept names containing words, such as 'and', which might indicate that the concept actually reflects more than one thing, including distinguishing zero coupon from original issue discount bonds, and replace the use of call price and put price, which are overly constrained, with monetary price.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to eliminate references to the exercise conventions ontology, which are not needed for bonds.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to incorporate the concept of a credit agreement repaid at maturity, which is a component assumed to be part of the definition of a bond, and to add an explanatory note to the definition of Treasury Bill.
change note: The https://spec.edmcouncil.org/fibo/ontology/SEC/Securities/Debt/Bonds.rdf version of this ontology was revised to reflect the refactored definition of a listing and improve the definition of corporate bond.
has maturity level: Release
copyright: Copyright (c) 2016-2025 EDM Council, Inc.
copyright: Copyright (c) 2018-2025 Object Management Group, Inc.

amortizing bond
type: Class
subclass of: bond
subclass of: Restriction
  on property: hasRepaymentTerms
  some values from: bond amortization payment terms
disjoint with: bullet bond
definition: bond that regularly pays down the principal (face value) on the debt along with its interest expense over the life of the bond

bond
type: Class
subclass of: CreditAgreementRepaidAtMaturity
subclass of: TradableDebtInstrument
subclass of: Restriction
  on property: hasSeries
  min qualified cardinality: 0
  on data range: string
subclass of: Restriction
  on property: hasInterestPaymentTerms
  some values from: coupon payment terms
subclass of: Restriction
  on property: hasRepaymentTerms
  some values from: bond principal repayment terms
definition: tradable debt instrument representing a loan in which the issuer owes the holder(s) a debt
explanatory note: Depending on the terms of the contract, the issuer is obliged to pay interest (the coupon) and/or to repay the principal at maturity. The most common bonds are corporate or governmental, typically used to finance specific projects or operations.

bond amortization payment terms
type: Class
subclass of: bond principal repayment terms
subclass of: Restriction
  on property: hasSchedule
  some values from: AmortizationSchedule
disjoint with: bond bullet principal repayment terms
definition: terms that include a schedule for repayment of the principal over the lifetime of the bond, typically in equal payments at regular intervals

bond conversion terms
type: Class
subclass of: ConversionTerms
subclass of: Restriction
  on property: specifiesConversionInto
  some values from: ListedShare
definition: terms indicating when a convertible bond can be converted to another security (usually a publicly traded share issued by of the same issuer)

bond coupon
type: Class
subclass of: InterestRate
definition: interest rate on a debt security that the issuer promises to pay to the holder until maturity, expressed as an annual percentage of the face value
synonym: coupon percent rate
synonym: coupon rate
synonym: nominal yield

bond insurance
type: Class
subclass of: InsurancePolicy
definition: insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default

bond principal repayment terms
type: Class
subclass of: PrincipalRepaymentTerms
subclass of: Restriction
  on property: hasSchedule
  some values from: PaymentSchedule
disjoint with: CallFeature
definition: terms for the repayment of the principal on a bond

bond registrar
type: Class
subclass of: LegalAgent
subclass of: Registrar
subclass of: Restriction
  on property: registers
  some values from: bond
definition: party responsible for maintaining records on behalf of the issuer that identify the owners of a registered bond issue
explanatory note: The trustee under a bond contract often also acts as registrar.

bond variable coupon
type: Class
subclass of: VariableInterestRate
subclass of: bond coupon
definition: bond coupon that has a variable interest rate

bond with partial call
type: Class
subclass of: callable bond
subclass of: Restriction
  on property: hasCallFeature
  some values from: partial call feature
definition: bond with a feature whereby the issue can be partially called for amounts that are at the discretion of the issuer

bond with published sinking fund
type: Class
subclass of: amortizing bond
definition: bond whereby amortization is via a known and published schedule

bond with warrant
type: Class
subclass of: bond
source: ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fifth edition, 2021-05
definition: bond that is issued together with one or more warrant(s) attached as part of the offer, the warrant(s) granting the holder the right to purchase a designated security, often the common stock of the issuer of the debt, at a specified price
explanatory note: This concept is needed primarily to support cases where the bond issuer is the issuer of the warrant.

Build America Bond
type: Class
subclass of: municipal bond
definition: taxable municipal bond issued through December 31, 2010 under the American Recovery and Reinvestment Act of 2009 (ARRA)
explanatory note: BABs may be direct pay subsidy bonds or tax credit bonds.

bullet bond
type: Class
subclass of: bond
subclass of: Restriction
  on property: hasRepaymentTerms
  some values from: bond bullet principal repayment terms
disjoint with: amortizing bond
disjoint with: callable bond
definition: bond whose entire principal value is paid on the maturity date, rather than amortized over its lifetime

bond bullet principal repayment terms
type: Class
subclass of: bond principal repayment terms
definition: terms for repayment of the principal for a bond as a single payment covering the whole principal amount

callable bond
type: Class
subclass of: bond
subclass of: Restriction
  on property: isCallable
  has value: true
subclass of: Restriction
  on property: has extraordinary redemption provision
  on class: extraordinary redemption provision
  max qualified cardinality: 1
subclass of: Restriction
  on property: hasCallFeature
  some values from: CallFeature
definition: bond that includes a stipulation allowing the issuer the right to repurchase and retire the bond at the call price after the call protection period

callable convertible bond
type: Class
subclass of: callable bond
subclass of: convertible bond
definition: convertible bond that is also callable

certificate of obligation
type: Class
subclass of: municipal security
definition: municipal security available to governing councils in case of emergency, such as a natural disaster, that needs immediate action without time for voter referendum
abbreviation: CO
explanatory note: CO's are similar to GO bonds, except that they do not require voter approval before they are issued. The CO's are also guaranteed by the City's taxation power and are counted in the calculation of the tax rate that is needed to support debt payments.
explanatory note: For example, when a hurricane destroys the police and emergency services building, there is no time to go through the process of voter referendum. The local council must be able to borrow the money to set up provisional buildings and necessary equipment for police and emergency services so that the community is served in continuity.

certificate of participation
type: Class
subclass of: DebtInstrument
definition: debt instrument evidencing a pro rata share in a specific pledged revenue stream, usually lease payments by the issuer that are typically subject to annual appropriation
abbreviation: COP
explanatory note: A certificate of participation (COP) is a type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. The certificate generally entitles the holder to receive a share, or participation, in the payments from a particular project. The payments are passed through the lessor to the certificate holders. The lessor typically assigns the lease and the payments to a trustee, which then distributes the payments to the certificate holders.

conventional gilt
type: Class
subclass of: fixed coupon bond
subclass of: U.K. Government security
definition: fixed coupon bond issued by HM Treasury that guarantees to pay the holder of the gilt a fixed cash payment (coupon) every six months until the maturity date, at which point the holder receives the final coupon payment and the return of the principal
explanatory note: Conventional gilts are the simplest form of government bond and constitute around 75 percent of the gilt portfolio.

convertible bond
type: Class
subclass of: bond
subclass of: ConvertibleSecurity
subclass of: Restriction
  on property: hasContractualElement
  on class: bond conversion terms
  min qualified cardinality: 0
definition: bond that gives the holder the right to convert the bond into a fixed number of shares (conversion ratio) if the equity price rises above a specified level (strike price)
explanatory note: If the equity price remains below the strike price throughout the term of the bond it matures and is redeemed like a regular bond. The conversion ratio and strike price are usually set when the convertible bond is issued.

corporate bond
type: Class
subclass of: bond
subclass of: Restriction
  on property: isIssuedBy
  some values from: Restriction
    on property: isPlayedBy
    some values from: LegalEntity
disjoint with: government bond
disjoint with: municipal bond
definition: bond issued by a company in order to raise financing
explanatory note: Corporate bonds are issued for purposes such as mergers and acquisitions, business expansion, or to cover ongoing operational needs, and are typically longer-term debt instruments that have a maturity of at least one year. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.
explanatory note: Note that some classification schemes consider any bond except those issued by a government in its own currency to be a corporate bond, for example, a bond issued by Canada in US dollars might be classified as a corporate bond. Bonds issued by multinational / supranational organizations such as the European Bank for Reconstruction and Development (EBRD) may also be considered corporate bonds rather than government bonds.

CouponPayment
type: Class
deprecated: true
equivalent class: InterestPayment

coupon payment terms
type: Class
subclass of: InterestPaymentTerms
subclass of: Restriction
  on property: hasInterestRate
  some values from: bond coupon
subclass of: Restriction
  on property: hasCurrency
  some values from: Currency
subclass of: Restriction
  on property: hasSchedule
  some values from: InterestPaymentSchedule
definition: terms for payment of interest on a bond

CouponSchedule
type: Class
deprecated: true
equivalent class: InterestPaymentSchedule

equity linked bond
type: Class
subclass of: variable coupon bond
definition: bond based on the return on an equity over time, i.e. the price and dividend payments or the total return (similar to total return swaps)

extraordinary redemption provision
type: Class
subclass of: CallFeature
definition: provision that gives a bond issuer the right to call its bonds due to an unusual one-time occurrence, as specified in the offering statement
explanatory note: Such redemptions may occur when bond proceeds are not spent according to schedule; when bond proceeds are used in a way that makes nontaxable bond interest taxable; or when a catastrophe destroys the project being financed, among other reasons.

first regular coupon date
type: Class
subclass of: ExplicitDate
definition: scheduled date for the first regular coupon payment, in a regular repeating series of coupon periods, after any non standard (long or short) first coupon period in the schedule

fixed coupon bond
type: Class
subclass of: bond
subclass of: FixedIncomeSecurity
subclass of: Restriction
  on property: hasInterestPaymentTerms
  some values from: fixed coupon terms
disjoint with: variable coupon bond
definition: bond whose coupon rate and principal amount are fixed at the time of origination or sale and remain constant while the security is outstanding

fixed coupon terms
type: Class
subclass of: coupon payment terms
subclass of: Restriction
  on property: hasInterestRate
  some values from: FixedInterestRate
disjoint with: variable coupon terms
definition: terms for payment of interest on a bond with a fixed interest rate

floating rate note
type: Class
subclass of: variable coupon bond
subclass of: Restriction
  on property: hasInterestRate
  some values from: ReferenceInterestRate
definition: bond with a variable interest rate based on a published reference interest rate
explanatory note: The adjustments to the interest rate (coupon) are made periodically, usually on a quarterly or monthly basis, and are tied to a certain money-market index. Also known as a "floater". For example six months USD LIBOR + 0.20%.

full faith credit bond
type: Class
subclass of: unsecured bond
definition: bond secured by an unconditional promise to pay by another entity
explanatory note: Full faith and credit bonds are typically backed by a government entity and are considered low risk.
synonym: full faith and credit bond

general obligation municipal bond
type: Class
subclass of: full faith credit bond
subclass of: municipal bond
disjoint with: revenue bond
definition: municipal bond that is backed by the full faith and credit and general resources of the issuing municipality, including its general taxing authority
abbreviation: GO bond

government bond
type: Class
subclass of: bond
subclass of: government issued debt security
definition: debt security issued by a government to fund government spending
synonym: government-issued bond

government issued debt security
type: Class
subclass of: DebtInstrument
subclass of: Restriction
  on property: isIssuedBy
  some values from: Restriction
    on property: isPlayedBy
    some values from: Polity
definition: debt security issued by some government on behalf of some polity, including sovereign and municipal debt

green bond
type: Class
subclass of: bond
definition: bond issued specifically to fund climate or environmental projects
explanatory note: These bonds are typically asset-linked and backed by the issuer's balance sheet. Green bonds finance projects aimed at energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, the protection of aquatic and terrestrial ecosystems, clean transportation, sustainable water management and the cultivation of environmentally friendly technologies, and often include incentives such as tax exemption.

implicit full faith credit bond
type: Class
subclass of: unsecured bond
definition: bond issued by a government sponsored agency or corporation rather than by the government directly
explanatory note: It doesn't carry an explicit full faith and credit guarantee but the market believes the government wouldn't let it default or fail.
synonym: implicit full faith and credit bond

index-linked bond
type: Class
subclass of: variable income bond
subclass of: Restriction
  on property: isBasedOn
  some values from: Class
    union of: EconomicIndicator
    union of: MarketRate
definition: bond whose income may vary over time, because either the coupon rate or principal amount is related to a specific index, such as the Consumer Price Index

inflation-linked bond
type: Class
subclass of: index-linked bond
subclass of: Restriction
  on property: isBasedOn
  some values from: InflationRate
definition: bond indexed to inflation so that the principal or interest payments rise and fall with the rate of inflation
abbreviation: ILB
explanatory note: Inflation-linked bonds are primarily issued by sovereign governments, such as the U.S. and the UK.
synonym: inflation-indexed bond

last regular coupon date
type: Class
subclass of: ExplicitDate
definition: scheduled date of the last regular coupon payment, that is the last of the payments that are made according to a regular repeating series of coupon periods, before any non-standard (long or short) final coupon period in the schedule

listed bond
type: Class
subclass of: bond
subclass of: ListedSecurity
disjoint with: unlisted bond
definition: bond that may be traded on an exchange
explanatory note: Most exchange traded bonds are corporate bonds (but most corporate bonds are not exchange traded bonds).

lottery convention
type: NamedIndividual
type: partial redemption allocation convention
definition: convention involving an impartial lottery for determining which securities are subject to partial call or partial redemption

make whole call
type: Class
subclass of: CallEvent
definition: call allowing the issuer to pay off remaining debt early
explanatory note: The issuer typically has to make a lump sum payment to the investor(s) derived from a formula based on the net present value (NPV) of future coupon payments that will not be paid incrementally because of the call combined with the principal payment the investor would have received at maturity.

mandatory convertible bond
type: Class
subclass of: convertible bond
subclass of: Restriction
  on property: hasContractualElement
  some values from: bond conversion terms
definition: convertible bond that converts into shares at maturity regardless of the equity price
explanatory note: The conversion ratio at maturity reflects the equity price and par value of the bond when issued. There is also typically a second higher conversion ratio if the equity price rises above the strike during the term of the bond.

medium term note
type: Class
subclass of: bond
definition: bond issued over time under a shelf registration program, where each issue may have a different coupon and maturity typically ranging from one to ten years
explanatory note: A medium-term note (MTN) is a debt note that usually matures (is paid back) in 5 to 10 years, but the term may be less than one year or as long as 100 years. They can be issued on a fixed or floating coupon basis.
explanatory note: By shelf registration we mean the security registration process where an issuer registers in advance, and can issue lots of securities for up to three years.
explanatory note: Medium term notes are typically issued by corporations and financial institutions, although GSEs also have MTN programs. MTNs may be issued under a shelf registration program which allows the company to issue bonds over time with varying maturities and coupons. Companies issue MTNs to have a more flexible source of funding. They may also issue MTN in response to 'reverse inquiry' by investors looking for bonds with specific maturities, issue size and coupon.

municipal bond
type: Class
subclass of: government bond
subclass of: municipal security
definition: government bond that may be issued by a regional, rather than national, authority
abbreviation: muni
explanatory note: Municipal bonds may be issued by states, cities, counties, special tax districts or special agencies or authorities of state or local governments.

municipal debt funds usage
type: Class
subclass of: LegalDocument
definition: official statement specifying how the funds raised via a new issue of municipal securities are to be applied

municipal debt remarketing agent
type: Class
subclass of: Dealer
subclass of: ContractThirdParty
definition: municipal securities dealer responsible for reselling to investors securities (such as variable rate demand obligations and other tender option bonds) that have been tendered for purchase by their owner
explanatory note: The remarketing agent also typically is responsible for resetting the interest rate for a variable rate issue and may act as tender agent.

municipal debt source of funds
type: Class
subclass of: LegalDocument
definition: official statement identifying the source of funds for a new issue of municipal securities

municipal note
type: Class
subclass of: municipal security
definition: short-term obligation to repay a specified principal amount on a certain date, together with interest at a stated rate, usually payable from a defined source of anticipated revenues
explanatory note: Notes usually mature in one year or less, although notes of longer maturities are also issued.

municipal security
type: Class
subclass of: government issued debt security
subclass of: Restriction
  on property: hasObjective
  some values from: municipal debt funds usage
subclass of: Restriction
  on property: isIssuedBy
  some values from: Restriction
    on property: isPlayedBy
    some values from: Class
      union of: MunicipalEntity
      union of: RegionalSovereignty
subclass of: Restriction
  on property: has funding source
  some values from: municipal debt source of funds
disjoint with: sovereign debt instrument
definition: debt obligation issued by a regional governmental entity
explanatory note: A municipal security is typically a bond, note, warrant, certificate or other similar obligation issued by a state or local government or their agencies or authorities (such as cities, towns, villages, counties or special districts or authorities). A prime feature of most municipal securities is that interest or other investment earnings on them are generally excluded from gross income of the bondholder for federal income tax purposes. Some municipal securities are subject to federal income tax, although the issuers or bondholders may receive other federal tax advantages for certain types of taxable municipal securities. Some examples include Build America Bonds, municipal fund securities and direct pay subsidy bonds.

municipal trustee
type: Class
subclass of: Trustee
subclass of: FinancialInstitution
definition: financial institution with trust powers, designated by the issuer, that acts, pursuant to a bond contract, in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract
explanatory note: In many cases, the trustee also acts as custodian, paying agent, registrar and/or transfer agent for the bonds.

original issue discount bond
type: Class
subclass of: bond
subclass of: Restriction
  on property: hasRelativePriceAtMaturity
  has value: ParValue
subclass of: Restriction
  on property: has original issue discount amount
  on class: MonetaryAmount
  min qualified cardinality: 0
definition: interest-bearing bond issued at a deep discount to face value
explanatory note: An original issue discount (OID) is the discount in price from a bond's face value at the time a bond or other debt instrument is first issued. The OID is the amount of discount or the difference between the original face value and the price paid for the bond.
explanatory note: The principal amount accretes over time at a constant accrual rate and is redeemed at full face value at maturity.
synonym: OID bond

partial call
type: Class
subclass of: CallEvent
definition: call of part of an issue

partial call feature
type: Class
subclass of: CallFeature
subclass of: Restriction
  on property: has partial redemption allocation convention
  some values from: partial redemption allocation convention
definition: call feature whereby the issuer can recall part of the issue on scheduled dates, where bonds are selected to be called according to some rule, or by selecting various bonds at random

partial redemption allocation convention
type: Class
subclass of: Convention
subclass of: Restriction
  on property: hasRateValue
  max qualified cardinality: 1
  on data range: decimal
definition: convention used to determine how the partial call will be actioned with respect to bond selection

percentage cumulative average value
type: NamedIndividual
type: rate basis convention
definition: rate basis calculated as a percentage of cumulative average value
abbreviation: percentage CAV

percentage par value
type: NamedIndividual
type: rate basis convention
definition: rate basis calculated as a percentage of par value

perpetual bond
type: Class
subclass of: bond
definition: bond that has no maturity date, i.e., one that pays interest in perpetuity
explanatory note: Perpetual bonds function much like dividend-paying stocks or certain preferred securities. Just as the owner of the stock receives a dividend payment as long as the stock is held, the perpetual bond owner receives an interest payment as long as the bond is held.
synonym: consul

pro rata convention
type: NamedIndividual
type: partial redemption allocation convention
definition: convention whereby securities that are subject to partial redemption are allocated proportionately

rate basis convention
type: Class
subclass of: Convention
subclass of: Restriction
  on property: hasRateValue
  max qualified cardinality: 1
  on data range: decimal
definition: basis for a percentage quoted rate as used in specifying bond call percentage amounts

redemption payment
type: Class
subclass of: PaymentEvent
subclass of: RedemptionEvent
definition: repayment event involving payment of a bond's principal amount at maturity or when it is called

redemption schedule
type: Class
subclass of: PaymentSchedule
subclass of: Restriction
  on property: comprises
  some values from: RedemptionEvent
definition: repayment schedule whereby a given percentage of a bond issue is redeemed on predefined dates

RegularCouponSchedule
type: Class
deprecated: true
equivalent class: InterestPaymentSchedule

regulatory call
type: Class
subclass of: CallEvent
definition: call triggered by some regulation-specific rule

remarketable bond
type: Class
subclass of: corporate bond
subclass of: floating rate note
definition: corporate bond program where the coupon rate on outstanding bonds is periodically reset through an auction process
explanatory note: A remarketing agent (dealer or underwriter) periodically surveys bond holders to identify those who want to sell bonds. The agent surveys market (or holds an auction) to determine interest rate at which the bonds can be resold. The rate on all outstanding bonds resets at the new rate. These programs are perpetual in the sense they often don't have a fixed maturity date, but the company can redeem them. If an auction fails, i.e., the agent can't place all the bonds then.

revenue bond
type: Class
subclass of: municipal bond
subclass of: secured bond
definition: municipal bond supported by the revenue from a specific project
explanatory note: Revenue bonds are municipal bonds that finance income-producing projects, such as toll bridges, highways, or local stadiums, and are secured by a specified revenue source. Typically, revenue bonds can be issued by any government agency or fund that is managed in the manner of a business, such as entities having both operating revenues and expenses.

secured bond
type: Class
subclass of: bond
disjoint with: unsecured bond
definition: bond that is backed by collateral, such as a tangible asset or income stream, in addition to a general promise to pay
explanatory note: A secured bond may be collateralized by a claim on real assets, such as a factory or auto fleet; or by a claim on a revenue stream. A secured bond differs from a mortgage in that proceeds of the bond sale aren't used to acquire the asset.

sinking fund amortization terms
type: Class
subclass of: bond amortization payment terms
subclass of: Restriction
  on property: is mandatory
  on data range: boolean
  qualified cardinality: 1
definition: terms for the paydown of principal in a sinking fund type of amortizing security
editorial note: At present there is only a schedule, there should be other terms for what happens on the scheduled dates. Sinking fund may be bullet e.g. x percent over year for y years. SF may be mandatory or contingent on some other economic event.

sovereign bond
type: Class
subclass of: government bond
subclass of: sovereign debt instrument
disjoint with: municipal bond
definition: bond issued by the government of a country
explanatory note: Sovereign bonds issued by G20 developed countries are generally full faith and credit obligations. Sovereign bonds issued by emerging and developing countries may be issued in local currency or a G7 currency, and may either be full faith and credit (unsecured) or secured.

sovereign debt instrument
type: Class
subclass of: government issued debt security
subclass of: Restriction
  on property: isIssuedBy
  some values from: Restriction
    on property: isPlayedBy
    some values from: SovereignState
definition: debt security issued by the government of a country

special assessment bond
type: Class
subclass of: municipal bond
subclass of: secured bond
definition: municipal bond used to fund a development project that is payable from the revenues of an assessment (tax) on the community that is intended to benefit from the project
explanatory note: A special assessment is a charge imposed against a property in a particular locality because that property receives a special benefit by virtue of some public improvement, separate and apart from the general benefit accruing to the public at large. Special assessments may be apportioned according to the value of the benefit received, rather than merely the cost of the improvement.

special obligation bond
type: Class
subclass of: municipal bond
definition: bond secured by a limited revenue source, such as receipts derived from a designated project

special tax bond
type: Class
subclass of: municipal bond
subclass of: secured bond
definition: bond secured by revenues derived from designated taxes other than ad valorem taxes
example: For example, bonds for a particular purpose might be supported by sales, cigarette, fuel or business license taxes.

StepEvent
type: Class
deprecated: true
equivalent class: StepEvent

StepSchedule
type: Class
deprecated: true
equivalent class: StepSchedule

step up bond
type: Class
subclass of: bond
subclass of: FixedIncomeSecurity
subclass of: Restriction
  on property: hasInterestPaymentTerms
  some values from: stepped coupon terms
definition: bond with a coupon that increases (steps up) while the bond is outstanding
explanatory note: The step change may be one time, or occur according to a schedule or at regular intervals.
synonym: step down bond

stepped coupon terms
type: Class
subclass of: coupon payment terms
subclass of: Restriction
  on property: hasSchedule
  some values from: StepSchedule
definition: coupon payment terms for securities with a coupon that increases (steps up) while the bond is outstanding

strip bond
type: Class
subclass of: zero coupon bond
subclass of: Strip
subclass of: Restriction
  on property: isBasedOn
  some values from: bond
definition: bond that is part of a series of bonds formed by selling each interest payment and the principal amount of a bond as separate zero coupon bonds.

tax allocation bond
type: Class
subclass of: municipal bond
subclass of: secured bond
definition: bond payable from the incremental increase in tax revenues realized from any increase in property value and other economic activity, often designed to capture the economic benefit resulting from a bond financing
explanatory note: Tax increment bonds, also known as tax allocation bonds, often are used to finance the redevelopment of blighted areas.

treasury bill
type: Class
subclass of: U.S. Treasury security
subclass of: MoneyMarketInstrument
subclass of: Restriction
  on property: hasRelativePriceAtIssue
  has value: AtADiscount
subclass of: Restriction
  on property: hasRelativePriceAtMaturity
  has value: ParValue
subclass of: Restriction
  on property: hasInterestRate
  some values from: ReferenceInterestRate
definition: short-term zero coupon treasury obligation with a maturity ranging from one to twelve months
abbreviation: T-bill
explanatory note: The pricing of T-bills is unique among U.S. government debt issues. Treasury bills are offered in multiples of $100 and in terms ranging from a few days to 52 weeks. Rather than providing interest payments as Treasury Bonds or Notes do, T-bills are sold at a discount, and the entire return is realized upon maturity. The price of a bill is determined at auction. The annualized interest rate earned on T-bills is equal to the difference between the purchase price and maturity value, divided by the maturity value.

treasury bond
type: Class
subclass of: sovereign bond
subclass of: U.S. Treasury security
definition: long term term coupon bearing treasury obligation issued in terms of 20 years or 30 years that pays interest every six months until they mature

treasury inflation-protected security
type: Class
subclass of: inflation-linked bond
subclass of: U.S. Treasury security
subclass of: variable principal bond
definition: variable income bond whose principal is indexed to inflation or deflation and thus changes over the life of the security
abbreviation: TIPS
explanatory note: Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater.

treasury note
type: Class
subclass of: medium term note
subclass of: U.S. Treasury security
definition: medium term coupon bearing treasury obligation with original maturity ranging from two to ten years

U.K. Government security
type: Class
subclass of: sovereign debt instrument
definition: debt instrument issued by HM Treasury and listed on the London Stock Exchange
explanatory note: If a private investor wishes to purchase gilts the secondary market can be accessed through a stockbroker, bank or the DMO's Purchase and Sale Service.
explanatory note: The term 'gilt' or 'gilt-edged security' is a reference to the primary characteristic of gilts as an investment: their security. This is a reflection of the fact that the British Government has never failed to make interest or principal payments on gilts as they fall due.
synonym: gilt
synonym: gilt-edged security

U.S. Treasury security
type: Class
subclass of: sovereign debt instrument
subclass of: Restriction
  on property: isDenominatedIn
  has value: USDollar
definition: debt instrument issued by the United States Department of the Treasury that carries a full faith and credit guarantee

unlisted bond
type: Class
subclass of: bond
definition: bond that is traded over the counter rather than via an exchange or other listing facility
synonym: OTC Bond

unsecured bond
type: Class
subclass of: bond
definition: bond that is only secured by the bond issuer's good credit standing
explanatory note: Most unsecured bonds pose limited risk of default, as the organizations that issue them are typically financially sound.
synonym: debenture

variable coupon bond
type: Class
subclass of: variable income bond
subclass of: Restriction
  on property: hasInterestRate
  some values from: bond variable coupon
definition: bond that has a floating interest rate
explanatory note: The rate adjusts according to a predetermined formula outlined in the bond's prospectus or official statement.

variable coupon terms
type: Class
subclass of: coupon payment terms
subclass of: Restriction
  on property: isBasedOn
  some values from: MarketRate
subclass of: Restriction
  on property: hasExpression
  some values from: variable interest calculation formula
definition: contractual terms specifying the calculation of the interest rate for a variable coupon bond

variable debt principal
type: Class
subclass of: PubliclyIssuedDebt
subclass of: Restriction
  on property: hasMonetaryAmount
  some values from: MonetaryAmount
definition: principal that is defined in relation to some variable and so varies over time, as principal
explanatory note: Not the same as principal paydown. This is when the principal itself varies over time, usually as a result of being defined in relation to some index such as an inflation index. Forms the debt principal in instruments such as inflation bonds.

variable income bond
type: Class
subclass of: bond
subclass of: VariableIncomeSecurity
definition: bond whose income may vary over time, because either the coupon rate or principal amount changes in line with an index or schedule over the life of the security

variable interest calculation formula
type: Class
subclass of: FullyIndexedInterestRate
definition: formula for the calculation of variable interest

variable interest expression
type: Class
subclass of: Expression
subclass of: Restriction
  on property: has ceiling
  max qualified cardinality: 1
  on data range: decimal
subclass of: Restriction
  on property: has floor
  max qualified cardinality: 1
  on data range: decimal
subclass of: Restriction
  on property: hasArgument
  on class: FullyIndexedInterestRate
  qualified cardinality: 1
definition: an expression used to determine a variable interest payment amount

variable principal bond
type: Class
subclass of: variable income bond
subclass of: Restriction
  on property: definesTermsFor
  some values from: variable debt principal
definition: bond whose principal adjusts over time with changes in an index
explanatory note: The principal on variable principal bonds adjusts line with an index such as inflation or GDP. For example, for a bond linked to the CPI, if inflation rises two percent the principal increases by 2 percent. The coupon rate is typically fixed. The best-known example is TIPS or Treasury Inflation Protected Bonds, which are linked to the CPI. TIPs offer a real or inflation adjusted rate of return.

zero coupon bond
type: Class
subclass of: bond
subclass of: FixedIncomeSecurity
subclass of: Restriction
  on property: hasRelativePriceAtMaturity
  has value: ParValue
subclass of: Restriction
  on property: has original issue discount amount
  on class: MonetaryAmount
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasInterestPaymentTerms
  some values from: zero coupon terms
definition: bond issued with a coupon rate of zero and that trades at a deep discount to face value
explanatory note: Fannie Mae also issues zero-coupon callable debt securities. Zero-coupon notes are debt securities on which no coupon interest is paid to the investor. Rather, the security is purchased at a discounted dollar price and matures at par. If the option on a callable zero-coupon security is exercised, it is redeemed at a higher dollar price than the original issue price. The yield for a callable zero-coupon security is based on the difference between the original discounted price and the principal payment at the call date.
explanatory note: The principal amount accretes over time at a constant accrual rate and is redeemed at full face value at maturity. In effect, the accrual rate is the coupon rate or yield which is added to the outstanding principal rather than being paid out to investors.
synonym: z-bond

zero coupon terms
type: Class
subclass of: bond amortization payment terms
subclass of: fixed coupon terms
subclass of: Restriction
  on property: hasInterestRate
  has value: zero interest rate
definition: terms for payment of interest on a zero coupon bond

zero interest rate
type: NamedIndividual
type: FixedInterestRate
definition: an interest rate of zero (0) percent
has rate value: 0.00

has award date
type: ObjectProperty
sub property of: hasExplicitDate
domain: municipal bond
range: ExplicitDate
definition: specifies the date on which bonds are awarded to the lead manager or syndicate on negotiated deals, or the date of bidding on competitive deals
synonym: has sale date

has call price
type: ObjectProperty
sub property of: hasPrice
domain: CallFeature
range: MonetaryPrice
definition: indicates the amount of the call on the specified call date, typically the sum of par value and the call premium, as specified in the contract
explanatory note: This is the price a bond issuer or preferred stock issuer must pay investors to buy back, or call, all or part of an issue before the maturity date.
synonym: has redemption price

has call rate basis
type: ObjectProperty
domain: CallEvent
range: rate basis convention
definition: for each call event on the schedule, indicates whether the rate is expressed as a percentage of par or percentage of percentage of cumulative average value (CAV)
explanatory note: Zero coupon bonds and OID bonds are callable at an accreted value.

has ceiling
type: DatatypeProperty
sub property of: hasRateValue
domain: variable interest expression
range: decimal
definition: indicates the maximum variable interest payment amount

has convertible date
type: ObjectProperty
sub property of: hasExplicitDate
domain: bond conversion terms
range: ExplicitDate
definition: date on which a bond can be converted into the specified equity security

has extraordinary redemption provision
type: ObjectProperty
sub property of: hasContractualElement
domain: RedemptionProvision
range: extraordinary redemption provision
definition: relates the redemption provision of a debt instrument to one-time provision that may be exercised by the issuer under certain circumstances

has final maturity date
type: ObjectProperty
sub property of: hasExplicitDate
domain: RedemptionProvision
range: ExplicitDate
definition: indicates the final payment date of a financial instrument, at which point the principal (and all remaining interest) is due to be paid

has first call price
type: ObjectProperty
sub property of: has call price
domain: CallFeature
range: MonetaryPrice
definition: indicates the amount of the call on the first call date as specified in the call schedule

has first coupon payment date
type: ObjectProperty
sub property of: hasExplicitDate
sub property of: hasStartDate
domain: coupon payment terms
range: ExplicitDate
definition: specifies the first date on which the issuer or its agent expects or commits to make a coupon payment
explanatory note: The first coupon date sometimes occurs at an irregular time; that is, if the bond pays coupons every six months, the first coupon period may be longer or shorter than six months.
explanatory note: The first coupon payment period can be long or short when this date doesn't coincide with the start of a normal coupon payment period.

has first par call date
type: ObjectProperty
sub property of: hasExplicitDate
sub property of: hasStartDate
domain: CallFeature
range: ExplicitDate
definition: indicates the first date on which the bond may be called at par for redemption

has first par call price
type: ObjectProperty
sub property of: has first call price
domain: CallFeature
range: MonetaryPrice
definition: specifies the amount of the call on the first par call date as specified in the call schedule

has first premium call date
type: ObjectProperty
sub property of: hasExplicitDate
sub property of: hasStartDate
domain: CallFeature
range: ExplicitDate
definition: indicates the first date on which the bond may be called for redemption at a price above par

has first premium call price
type: ObjectProperty
sub property of: has first call price
domain: CallFeature
range: MonetaryPrice
definition: specifies the amount of the call on the first call date on which the bond may be called at a price above par as specified in the call schedule

has first put date
type: ObjectProperty
sub property of: has put date
sub property of: hasExplicitDate
domain: PutFeature
range: ExplicitDate
definition: indicates the initial date on which the holder may sell the bond to the issuer prior to maturity

has first put price
type: ObjectProperty
sub property of: hasPrice
domain: PutFeature
range: MonetaryPrice
definition: specifies the initial price at which the holder may sell the bond to the issuer prior to maturity

has floor
type: DatatypeProperty
sub property of: hasRateValue
domain: variable interest expression
range: decimal
definition: indicates the minimum variable interest payment amount

has funding source
type: ObjectProperty
sub property of: hasDataSource
domain: municipal security
range: municipal debt source of funds
definition: indicates the source of funds for a new issue of municipal securities

has last coupon payment date
type: ObjectProperty
sub property of: hasEndDate
sub property of: hasExplicitDate
domain: coupon payment terms
range: ExplicitDate
definition: specifies the final date on which the issuer expects to make a final coupon payment
explanatory note: The last coupon date sometimes occurs at an irregular time; that is, if the bond pays coupons every six months, the last coupon period may be longer or shorter than six months.

has lockout period
type: ObjectProperty
sub property of: hasDatePeriod
domain: CallFeature
range: DatePeriod
definition: indicates the period of time for which a callable security cannot be called and only interest coupon payments are received by the security holder
example: With a 10-year noncall 3-year ("10nc3") debt security, the security cannot be called for the first three years.

has municipal trustee
type: ObjectProperty
sub property of: hasThirdParty
domain: municipal bond
range: municipal trustee
definition: specifies the financial institution with trust powers, designated by the issuer, that acts, pursuant to a bond contract, in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract

has original issue discount amount
type: ObjectProperty
sub property of: hasMonetaryAmount
domain: bond
range: MonetaryAmount
definition: indicates the difference between the stated redemption price at maturity and the issue price

has partial redemption allocation convention
type: ObjectProperty
domain: partial call feature
range: partial redemption allocation convention
definition: indicates the convention used to determine how the redemption is allocated over the set of bond holders

has penultimate coupon payment date
type: ObjectProperty
sub property of: hasExplicitDate
domain: coupon payment terms
range: ExplicitDate
definition: specifies the last coupon payment prior to maturity
explanatory note: This is important since the securities processing area needs to start its procedures in anticipation of maturity. For zero coupon bonds, it is the last compounding date prior to maturity.

has premium amount
type: ObjectProperty
sub property of: hasMonetaryAmount
domain: CallFeature
range: MonetaryAmount
definition: indicates the premium paid to a bond holder when the bond is called

has put date
type: ObjectProperty
sub property of: hasExplicitDate
domain: PutFeature
range: ExplicitDate
definition: indicates the date on which a security is subject to redemption by the bond holder

has put frequency
type: ObjectProperty
sub property of: hasRecurrenceInterval
domain: PutFeature
range: RecurrenceInterval
definition: indicates the recurring window of time in which the put feature can be exercised

has redemption amount
type: ObjectProperty
sub property of: hasMonetaryAmount
domain: redemption payment
range: MonetaryAmount
definition: indicates the amount of the principal paid with a redemption payment

has remarketing agent
type: ObjectProperty
sub property of: hasThirdParty
domain: municipal security
range: municipal debt remarketing agent
definition: identifies the dealer responsible for reselling to investors securities (such as variable rate demand obligations and other tender option bonds) that have been tendered for purchase by their owner.

has reset date offset
type: ObjectProperty
sub property of: hasDate
domain: variable coupon terms
range: RelativeDate
definition: indicates the offset from the coupon payment date on which the rate is reset

is bank qualified
type: DatatypeProperty
domain: municipal bond
range: boolean
definition: indicates whether or not a given municipal bond conforms with section 265(b)(3) of the IRS tax code; when purchased by a commercial bank for its portfolio, such designation allows the bank to deduct a portion of the interest cost of carry for the position
explanatory note: A bond that is bank qualified is also known as a qualified tax-exempt obligation.

is legal opinion available
type: DatatypeProperty
domain: municipal bond
range: boolean
definition: indicates whether a legal opinion exists for a given municipal bond

is linked to fallback
type: ObjectProperty
sub property of: refersTo
domain: FinancialInstrument
range: government bond
definition: relates an index-linked instrument to a government bond that may be selected by a calculation agent
explanatory note: Fallback Bond means, in relation to an Inflation Index applicable to an Inflation Linked Note, a bond selected by the Calculation Agent and issued by the government or one of the governments (but not any government agency) of the country (or countries) to whose level of inflation the Inflation Index relates and which pays a coupon and/or redemption amount which is calculated by reference to the Inflation Index, with a maturity date which falls on the same day as the Maturity Date of the Inflation Linked Notes, or such other date as the Calculation Agent shall select if there is no such bond maturing on the Maturity Date of the Inflation Linked Notes. If any bond so selected is redeemed, the Calculation Agent will select a new Fallback Bond on the same basis, but selected from all eligible bonds in issue at the time the original Fallback Bond is redeemed (including any bond for which the redeemed bond is exchanged). Note the rate of the fallback bond is used as a substitute for the inflation index if, for example, it is no longer published.

is mandatory
type: DatatypeProperty
range: boolean
definition: indicates whether something is required

is pro-rated
type: DatatypeProperty
domain: InterestPaymentTerms
range: boolean
definition: indicates whether the coupon is pro rated to the actual number of days in the payment period versus the number of payment periods

super sinker
type: DatatypeProperty
domain: sinking fund amortization terms
range: boolean
definition: indicates that the bond has a long-term coupon but short potential short maturity
explanatory note: Super-sinker is a colloquial term for a term maturity, usually from a single family mortgage revenue issue with several term maturities, that will be the first to be called from a sinking fund into which all proceeds from prepayments of mortgages financed by the issue are deposited. The maturity's priority status under the call provisions means that it is likely to be redeemed in its entirety well before the stated maturity date.

PutFeature
type: Class
subclass of: Restriction
  on property: is mandatory
  on data range: boolean
  qualified cardinality: 1