preference bond

简明释义

优先公债

英英释义

例句

1.The preference bond market can be less volatile than the stock market.

优先债券市场可能比股票市场波动性小。

2.Investors often choose a preference bond for its fixed interest rate.

投资者通常选择优先债券因为它的固定利率。

3.Many companies issue preference bonds to raise capital without diluting equity.

许多公司发行优先债券以筹集资金而不稀释股权。

4.A preference bond can provide more security compared to common stocks.

与普通股票相比，优先债券可以提供更多的安全性。

5.When interest rates rise, the value of a preference bond may decrease.

当利率上升时，优先债券的价值可能会下降。

作文

In the world of finance, various instruments are used by companies and governments to raise capital. One such instrument is the preference bond, which is often overlooked in favor of more common options such as stocks and traditional bonds. Understanding what a preference bond is can provide investors with a broader perspective on their investment choices.A preference bond is a type of fixed-income security that combines features of both equity and debt instruments. Unlike regular bonds, which pay interest at fixed intervals, a preference bond typically pays a fixed dividend that is prioritized over common stock dividends but may not be guaranteed. This means that if a company faces financial difficulties, holders of preference bonds will receive their dividends before common stockholders see any returns. This preferential treatment makes preference bonds an attractive option for risk-averse investors seeking stable income.One of the key characteristics of preference bonds is their hybrid nature. They offer fixed returns like bonds, but they also have some equity-like features. For instance, while they may not confer voting rights like common stocks, they can sometimes be converted into shares of the issuing company under certain conditions. This feature allows investors to benefit from potential capital appreciation if the company's stock performs well, thus blending the advantages of both worlds.Investors should also consider the risks associated with preference bonds. Although they are generally considered safer than common stocks, they are still subject to credit risk. If the issuing company defaults, holders of preference bonds may not receive their expected payments. Additionally, preference bonds typically have less liquidity compared to traditional bonds or stocks, which means they may be harder to sell quickly in the market.Furthermore, the market for preference bonds can be influenced by interest rate fluctuations. When interest rates rise, the value of existing preference bonds may decline, as new issues may offer higher yields. Conversely, when interest rates fall, existing preference bonds may become more valuable, as their fixed dividends appear more attractive compared to new issues.In conclusion, a preference bond is a unique financial instrument that offers a blend of features from both equity and debt. It provides investors with a stable income stream while offering some potential for capital appreciation. However, it is essential to weigh the benefits against the risks, such as credit risk and market liquidity. By understanding the nature of preference bonds, investors can make more informed decisions about their portfolios and explore opportunities that align with their financial goals.

在金融世界中，各种工具被公司和政府用来筹集资本。其中一种工具是优先债券，它常常被忽视，而更常见的选择是股票和传统债券。理解优先债券是什么，可以为投资者提供更广泛的投资选择视角。优先债券是一种固定收益证券，结合了股权和债务工具的特征。与定期支付利息的普通债券不同，优先债券通常支付固定的股息，该股息优先于普通股股息，但可能并不保证。这意味着如果一家公司面临财务困难，优先债券的持有者将在普通股东获得任何回报之前收到他们的股息。这种优先待遇使得优先债券成为寻求稳定收入的风险厌恶型投资者的一个有吸引力的选择。优先债券的一个关键特征是它们的混合性质。它们像债券一样提供固定回报，但也具有一些类似股权的特征。例如，尽管它们可能不赋予像普通股票那样的投票权，但在某些条件下，它们有时可以转换为发行公司的股份。这个特性使得投资者能够从公司的股票表现良好中受益，从而将两者的优势融合在一起。投资者还应考虑与优先债券相关的风险。尽管它们通常被认为比普通股票更安全，但它们仍然面临信用风险。如果发行公司违约，优先债券的持有者可能无法获得预期的付款。此外，优先债券的流动性通常低于传统债券或股票，这意味着它们可能在市场上更难以快速出售。此外，优先债券市场可能会受到利率波动的影响。当利率上升时，现有的优先债券的价值可能会下降，因为新的发行可能提供更高的收益。相反，当利率下降时，现有的优先债券的价值可能会增加，因为它们的固定股息相比新发行的债券显得更具吸引力。总之，优先债券是一种独特的金融工具，提供了股权和债务特征的结合。它为投资者提供了稳定的收入流，同时也提供了一些资本增值的潜力。然而，重要的是要权衡收益与风险，如信用风险和市场流动性。通过理解优先债券的性质，投资者可以更明智地做出关于其投资组合的决策，并探索与其财务目标一致的机会。