Debt Instrument

A debt instrument is an investment vehicle which is based on debt rather than equity.

Rather than giving its holder ownership in assets, a debt instrument gives its holder a promise of repayment of debt by a company, government or individual.

Debt instruments are typically contracts by which a borrower promises to repay their debt to a lender along with possibly interest in keeping with the terms and conditions of the contract.

Examples of debt instruments include bonds, exchange traded notes, mortgages, debentures and certificates.

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