What is a Debt instrument?

maje · Apprentice Joined: 11 Jun 2008 Posts: 1

Any investment carries with it a risk in part. There are people who can sell and buy commodities and specialization is of course pretty good, as you can track all the various particular commodities better, and you can possibly have even greater progress specialized for certain commodities. Now, having profits is great, but you also need to count on debts. Now, a debenture bond is actually an instrument dealing with long-term debts and is not secured. Written promise can also be a debt instrument, where instrument means a way of settling your debt, or at least guaranteeing for it.

corbie · Apprentice Joined: 23 Aug 2005 Posts: 1

Debt service in general is the money you need to have as a company in order to settle your debts over a certain, relatively short period of time, both for the interest and the principals. In a way, whenever you need to start covering for a debt, this gets activated. Of course, this also goes for personal affairs. On the other hand, debt service coverage can have several notions, but common to all of them is that it in a way measures annual income, is dividing the total of debt service to the net operating income. The result can suggest how favorable are your odds for getting a loan as it shows how your finances are standing.

isidro · Apprentice Joined: 18 Jul 2007 Posts: 1

Any asset you have is something that holds certain value. Taxation purposes are one of the focal points for determining value, but you also need to count in the intrinsic value of the asset, which will depend on location, desirability, security, and similar factors. Now, debt-equity ratio is one very important measure. Total shareholder equity is in that sense important factor because it is divided by the total of liabilities. Now, in the cases of assets, you would do well to protect them as they are the best liquidation cushion. Best of luck.

What is a Debt instrument?

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