Investor Glossary-underlying debtInvestor Glossary-underlying debtInvestor Glossary-underlying debtInvestor Glossary-underlying debtInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Underlying Debt

The HTML to link to this page
 

For municipal bonds, an underlying debt is the debt held by a government entity which exists in the jurisdiction of a larger entity. The larger entity (such as a state) understands the underlying debt as belonging to the smaller entity (such as a city). Even though the underlying debt is held by the smaller entity, both share the credit responsibilities - after all, the larger entity is likely to be more creditworthy than its smaller counterpart. Underlying debt shouldn't be confused with overlapping debt, which is debt that exists with equally ranked entities. In a different sense, an underlying debt also refers to an original loan that still exists. This underlying debt may be owed on a mortgage, for example.



Rate this underlying debt definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, per diem, APR, open position, ex-dividend date, current ratio, VIX, Zero Cost Collar, reverse mortgage, option premium, LIBOR, 1031 exchange, risk management, phantom income, cancelled check, FICO score, command economy, wholly-owned subsidiary, dividends payable, EBITDA, stock market close, balance sheet, deferred revenue, minority interest, irrevocable trust, deferred tax, required rate of return, 144a, FTSE, in escrow, limit order, stock split, implied volatility, debt service coverage, annual return, labor relations, quality assurance, ex-dividend, average price per share, inflation, 401a, 1035 exchange, class C shares, diluted share, margin rate, Key Rate Duration, retained earnings, liquidity ratio, covered put


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use