Fixed Income
Event of Default
Definition
What is Event of Default?
A contractually defined event that gives lenders or bondholders specified remedies.
Example in practice
How This Looks in Practice
Failure to pay principalThe original amount of money invested or lent, excluding later returns. after the grace period is an event of default.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.