- Bullet Transaction
A loan in which all principal is repaid when the loan matures instead of in installments over the life of the loan. Only interest is paid during the loan term. A bullet transaction may have two or more tranches, where the different tranches might have different maturities and/or different interest rates. A company might use a bullet loan for working capital, to purchase equipment or to finance an acquisition, among other uses. Revolving loans and term loans can be structured as bullet transactions. A bullet transaction with a maturity of 15 years would be called a "15-year bullet."
A bullet loan can be repaid by refinancing or by earning enough cash to repay the loan. A bullet transaction entails greater risk for the lender because if the company does poorly, the lender may not get back any of the principal. Bullet transactions are priced as a number of basis points (bp) over a benchmark such as U.S. Treasuries. Investors can buy certificates to invest in bullet transactions.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Bullet Ballet — Données clés Titre original Bullet Ballet Réalisation Shinya Tsukamoto Scénario Shinya Tsukamoto Acteurs principaux Shinya Tsukamoto Kirina Mano Hisashi Igawa Pays d’origine … Wikipédia en Français
Securitization — is a structured finance process, which involves pooling and repackaging of cash flow producing financial assets into securities that are then sold to investors. The name securitization is derived from the fact that the form of financial… … Wikipedia
Modern portfolio theory — Portfolio analysis redirects here. For theorems about the mean variance efficient frontier, see Mutual fund separation theorem. For non mean variance portfolio analysis, see Marginal conditional stochastic dominance. Modern portfolio theory (MPT) … Wikipedia
Covered bond — Titrisation La titrisation est une technique financière qui consiste classiquement à transférer à des investisseurs des actifs financiers tels que des créances (par exemple des factures émises non soldées, ou des prêts en cours), en transformant… … Wikipédia en Français
Titrisation — La titrisation (securitization en anglais) est une technique financière qui consiste classiquement à transférer à des investisseurs des actifs financiers tels que des créances (par exemple des factures émises non soldées, ou des prêts en cours),… … Wikipédia en Français
Distributed operating system — A distributed operating system is the logical aggregation of operating system software over a collection of independent, networked, communicating, and spatially disseminated computational nodes. Individual system nodes each hold a discrete… … Wikipedia
Jonestown — For other uses, see Jonestown (disambiguation) … Wikipedia
List of important publications in computer science — This is a list of important publications in computer science, organized by field. Some reasons why a particular publication might be regarded as important: Topic creator – A publication that created a new topic Breakthrough – A publication that… … Wikipedia
Bank Islam Malaysia — Infobox Company company name = Bank Islam Malaysia Bhd (Bank Islam) company logo = company type = Public company slogan = Leadership, Dynamism, Professionalism, Care and Trustworthiness foundation = 1 July 1983 location = Kuala Lumpur,… … Wikipedia
John Walker Lindh — Infobox Criminal subject name = John Walker Lindh image size = image caption = John Walker Lindh date of birth = birth date and age|1981|2|9 place of birth = District of Columbia, USA date of death = place of death = charge = supplying services… … Wikipedia