Here you will find a comprehensive list of terms and definitions related to obligate.com.
A book building deadline is a time by which investors must submit their subscriptions for eNotes in a company that is issuing eNote securities through a book building process. The book building deadline is the final deadline by which all subscriptions must be submitted.
A bullet bond is a type of bond that has a single, lump-sum payment due at maturity. This payment includes both the principal amount borrowed and any accumulated interest. Bullet bonds are also known as "maturity bonds" or "amortizing bonds," because they have a fixed repayment schedule and all of the principal and interest is paid back at the end of the term.
A coupon in a bond is the periodic interest payment that the bond issuer pays to the bondholder. Coupons are typically expressed as a percentage of the bond's face value, and they may be paid out at fixed intervals, such as annually or semi-annually.
In a bullet bond, which is a type of bond that has a single, lump-sum payment due at maturity, there is no coupon payment. Instead, the interest on the bond is accumulated over the life of the bond and is paid out in full at maturity along with the principal amount borrowed. This means that a bullet bond does not make periodic interest payments to the bondholder like other types of bonds do.
The day count convention is a standardized method for calculating the number of days between two dates. It is used to determine the amount of interest that accrues on the bullet bond over a given period of time.
Under the actual/360 day count convention, the number of days between two dates is calculated by dividing the actual number of days by 360. For example, if the interest period is 45 days long, the interest accrual would be calculated as follows: 45 days / 360 days = 0.125. This interest accrual is then used to calculate the interest that will be paid or received on the financial instrument.
An eNote is an unconditional promise to pay a specific sum to another party at a specific future date and can be modularly structured to fit any financing purpose. The eNotes are debt securities structured as on-chain tokens with a custom metadata & settlement functionality.
For Polygon the tokens are ERC20-tokens and can be transferred like USDC. Custom metadata describing the security will allow for settlement of a note by the issuer of the security and claiming the settlement by holders of the security. It also includes links to permastorage for legal documentation which is being signed by participating parties.
eNote denomination describes the value of the principal per eNote unit and is equal to the par value or face value.
Interest rate refers to the earnings generated and realized on an investment over a year (360 days). It's expressed as a percentage based on the invested amount, or face value of the eNote.
An International Securities Identification Number (ISIN) is a 12-digit alphanumeric code that uniquely identifies a specific security.
In the case of a bullet bond, the issuance date is the date on which the bond is first issued and transferred to investors, who committed to the purchase of the eNotes before the book building deadline. It is the start date for the bond's term, which is the period of time over which the bond will mature and be repaid. The issuance date is important because it determines the start of the bond's term and is also used to calculate the bond's yield. The issuance date is used as the starting point for this calculation.
The maturity of a bond is the date on which the bond issuer is required to pay back the principal amount borrowed and any accumulated interest to the eNote holder. The maturity date is also known as the "redemption date" or the "final payment date."
In the case of a bullet bond, the maturity is the date on which the bond issuer is required to pay back the principal amount borrowed and any accumulated interest in a single, lump-sum payment.
In the case of a bullet bond, the principal is the amount of money that is borrowed and that must be repaid to the bondholder along with any accumulated interest at the end of the bond's term. The principal is an important factor in determining the yield of a bond, which is the rate of return that an investor can expect to receive on their investment.
The publishing date is the date on which the issuance program is published on the marketplace of obligate.com. Investors can then subscribe to the issuance program until the book building deadline.
Option whether eNote can be transferred post-issuance to another investor.