bond-basics

Book-Entry Only

Term used to describe a Bond which cannot be purchased in physical or certificated form. In other words, there are no printed bond certificates delivered to the actual bondholders. A single bond or a bond for each Maturity of the Bonds is delivered to a central securities depository, typically The Depository Trust Company (DTC), but sometimes to the Trustee under the FAST Program. Bonds held in Book-Entry Only form are Registered Bonds.  Ownership by a bondholder of a Book-Entry Only Bond is generally determined by an entry on the records of the Registrar or the records of DTC and its participants.

See Also

Registered Bond

A bond whose owner is designated on records maintained for this purpose by a registrar, often the paying agent or trustee. 

Fast Automated Securities Transfer (FAST)

Program of Depository Trust Company (DTC) with a goal of reducing certificate movement by having bond certificates held by FAST transfer agents rather than by DTC. 

Hudson Yards Rail Yards

Start with the Bond Basics

Weighted Average Maturity

Generally, the weighted average maturity of a bond issue is the sum of the product of the issue price of each maturity of the bond issue multiplied by the number of years from the closing until that maturity date divided by the issue price of the entire bond issue.

Other Terms