What does bondholder mean?
A bondholder is an investor who owns a bond issued by a borrower, typically a corporation or government entity. The bondholder has a claim on the borrower's assets and income, and is entitled to receive regular interest payments and the return of principal at maturity. Bondholders play a crucial role in financing businesses and governments, and their interests are often closely watched by financial markets. Understanding the role of bondholders is essential for navigating the complex world of finance and investing.
nounA bondholder is an investor who owns a bond issued by a borrower, typically a corporation or government entity. The bondholder has a claim on the borrower's assets and income.
- An investor who owns a bond
- A person or entity with a claim on a borrower's assets
"The company's bondholders were concerned about its ability to repay the debt."
"The bondholders were notified of the company's financial difficulties."
"As a bondholder, she was entitled to receive regular interest payments."
Countable, used to refer to multiple investors.
"The company's bondholders were notified of the financial difficulties."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of bondholder
The term 'bondholder' originated in the late 19th century, combining 'bond' and 'holder'. A bond is a type of debt security, and a holder is one who possesses or owns something. The term has its roots in the financial and legal traditions of the United Kingdom and the United States.
Usage notes
Formal and commonly used in financial and business contexts.