Loan stock and bonds

Loan stock or bonds are borrowings issued to investors, normally bearing interest and repayable under stated terms. The issuer records a borrowing and normally recognises interest over the relevant period. Bond terms specify matters such as the interest rate, maturity date and any security. The holder's return and claim differ from those of an ordinary shareholder. The loan's repayment date and interest payment dates are essential when assessing cash commitments.

Also called: Loan stock bonds