Table of Contents
Is your debt considered publicly traded?
Under the new regulations, a debt instrument is treated as publicly traded if a price quote is available from at least one identified broker, dealer, or pricing service for the debt instrument and the debt instrument could be purchased or sold at the quoted price by the person receiving the quoted price (i.e., the …
Are bonds fungible?
A financial instrument (such as a stock, bond, or futures contract) is considered fungible if it can be bought or sold on one market or exchange, and then sold or bought on another market or exchange. Most physical assets are considered fungible because you can buy or sell them at various places.
What is a non fungible loan?
When companies need financing for acquisitions and can’t wait for their loan price to rebound, instead of potentially repricing the entire existing tranche, companies have recently issued smaller non-fungible tranches at wider pricing than their existing loans. …
Is debt an instrument?
Debt instruments are tools an individual, government entity, or business entity can utilize for the purpose of obtaining capital. Debt instruments provide capital to an entity that promises to repay the capital over time. Credit cards, credit lines, loans, and bonds can all be types of debt instruments.
Is Cancellation of debt ordinary income?
You have no ordinary income from cancellation of the debt.
Are debt issuance costs tax deductible?
(1) In general. Solely for purposes of determining the amount of debt issuance costs that may be deducted in any period, these costs are treated as if they adjusted the yield on the debt. To effect this, the issuer treats the costs as if they decreased the issue price of the debt.
What is a fungible good?
(4) Fungible good or fungible material The term “fungible good” or “fungible material” means a good or material, as the case may be, that is interchangeable with another good or material for commercial purposes and the properties of which are essentially identical to such other good or material.
What does it mean for a loan to be fungible?
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.
What is an example of a fungible good?
Fungible goods are items that are interchangeable because they are identical to each other for practical purposes. Commodities, common shares, options, and dollar bills are examples of fungible goods.
Are loans debt securities?
1. Loans are a type of debt in which a lender lends the money and a borrower borrows the money. A specific time limit is set for the repayment of the debt money or the principal amount which has been borrowed by the borrower from the lender; a bond is a type of loan also called a debt security.