Bond type

Bond type refers to the category or classification of the entity that is issuing the bonds to raise capital. The issuer type indicates the nature of the organization or institution behind the bond issuance. It helps assess the creditworthiness and risk associated with the bonds based on the characteristics of the issuer.

Corporate

A corporate issuer is a company or business entity that issues debt securities, such as bonds, to raise capital for its operations or expansion. Corporate issuers issue bonds to investors in exchange for funds, with the promise to repay the principal amount along with interest over a specified period. Corporate bonds are typically backed by the issuer's assets and cash flows, and the creditworthiness of the issuer plays a significant role in determining the bond's risk and return profile.

Sovereign

A sovereign issuer is a national government that issues debt securities, such as government bonds, to finance its budget deficits or fund public expenditures. Sovereign issuers issue bonds denominated in their local currency or foreign currencies to domestic and international investors. The creditworthiness of a sovereign issuer is a key factor in determining the interest rates on its bonds, with factors such as economic stability, political risk, and debt levels influencing investor confidence.

Agency

An agency issuer refers to a government-sponsored entity or organization that issues debt securities on behalf of a government agency. These agencies are typically created by the government to fulfill specific public policy objectives, such as providing funding for housing, education, or agriculture. Agency issuers may issue bonds or other debt instruments to raise capital for their operations, with the implicit or explicit backing of the government.

Local authority/Political division

A local authority or political division issuer refers to a municipal government entity that issues debt securities to finance public projects or infrastructure development at the local level. These issuers include cities, counties, school districts, and other local government entities that raise funds through the issuance of municipal bonds. Local authority issuers may issue general obligation bonds or revenue bonds, with the repayment source often tied to specific projects or revenue streams.

Supranational

A supranational issuer refers to an international organization or entity that issues debt securities on behalf of multiple member countries or regions. Supranational issuers, such as the World Bank or the European Investment Bank, raise funds in the capital markets to finance development projects, infrastructure investments, or other initiatives that benefit multiple countries. Supranational bonds are typically considered low-risk investments due to the collective backing of member countries and the strong credit ratings of these issuers.

Securitized/Collateralized

A securitized or collateralized issuer refers to an entity that pools together financial assets, such as mortgages, loans, or receivables, and issues securities backed by these assets. Securitized issuers create asset-backed securities (ABS) or collateralized debt obligations (CDOs) that are sold to investors in the capital markets. The cash flows from the underlying assets support the payments on the securities, and the credit quality of the issuer is linked to the performance of the underlying assets.