Securities

How it is used

Used in treasury, capital markets and bank balance sheets. Banks hold a securities portfolio, mostly government bonds, for liquidity and income. Securities are issued, traded, held in custody and settled. A 'securities firm' or 'brokerage' buys and sells them for clients.

Example sentences

1. Government securities make up most of the bank's securities portfolio.

2. The client wants to use his securities as collateral for a loan.

Common collocations

• securities portfolio
• government securities
• marketable securities
• securities firm
• securities lending

Related terms

• bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
• yieldThe income an investment earns, shown as a percentage of its price or value. For a bond, it is the return an investor gets by buying at the current price.
• investment bankA bank that helps companies and governments raise money in capital markets and advises on deals such as mergers and acquisitions, rather than serving everyday savers.
• settlementThe final step of a payment or trade, when money or securities actually move from one party to the other and the deal is complete.
• collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.

More terms: Treasury & Markets

• treasury
• derivative
• forward contract
• swap
• repo