Muddled Mustafic Melancholic Masculine Majestic Mathematical Monkey

Tuesday, September 23, 2008

Bond

Based on my superficial understanding of the word bond, I believe it is a simple type of instrument where you pay a lump sum of money, and receive a coupon or a yield monthly or yearly at regular intervals, with the total accumulated coupon payouts being of a slightly higher percentage of the initially investment. The bond contract is binding, ensuring that the investor receives that particular amount regardless of any financial farce.

Mini, as defined explicitly by www.dictionary.com being anything of a small, reduced, or miniature size, would suggest that the word "mini-bond" is a bond of smaller value, intensity, reduction in risk or of course, reduction in eventual payouts, which has unfortunately become the latest talk of the town.

Deceiving right?
Triple A rating? Double A rating?
Nah. I suggest you leave that categorizing methodology solely to your Energizer batteries, for the moral or rather immoral conscience in financial institutions has left us commonfolk cannon fodder by the banks along the Singapore River.