Debt A debt is an obligation owed by one party (the debtor) to a second party (the creditor). A debt is created when a creditor agrees to lend or invest a stated principal amount of funds to a debtor. Designated Investments NTTC provides Territory Bonds as Designated Investments under the Australian Department of Immigration and Border Protection’s Business Innovation and Investment program and Investor Retirement visa (Sub class 405) program. Discount The amount by which the value of a security is less than its face value. Face Value The amount of money indicated on a security, or inscribed in relation to a security, as being due to be paid on maturity. Fixed Interest Interest on investments such as bonds and debentures, paid at a predetermined and unchanging rate for a specified period, the life of the bond or debenture. Floating Rate Note Medium to longterm debt securities carrying a variable interest rate adjusted periodically by a margin against a benchmark rate. Government Business Divisions Entities that operate on a commercial and have a significant proportion of their operating cost recovered through charges on goods and services provided to users. Government Owned Corporations Entities that operate on a commercial basis whose operations are not guaranteed by the Crown and do not make the Territory liable for its debts, liabilities or obligations. Inscribed Securities for which the ownership is recorded in a registry. The owner is issued with a certificate, which is not itself transferable. The stock can only be transferred by use of the appropriate documents. Interest Rate Risk Exposure to loss resulting from a change in interest rates. Hedging strategies are designed to minimise, possibly eliminate, interest rate risk. Local Authorities Town, municipal and shire councils within the Territory. Margin The difference between a benchmark interest rate and the rate charged to an individual borrower. It is sometimes called the spread. Maturity Date The date on which the final bond payment is to be made. Operational Risk The risk of loss, whether direct or indirect, arising from inadequate or failed internal processes, people or systems, or from external events. It encompasses risks inherent in the agency’s operating activities such as fraud risk, settlement risk, legal risk, accounting risk, personnel risk and reputation risk. Premium The amount by which the value of a security is greater than its face value.
Debt A debt is an obligation owed by one party (the debtor) to a second party (the creditor). A debt is created when a creditor agrees to lend or invest a stated principal amount of funds to a debtor. Designated Investments NTTC provides Territory Bonds as Designated Investments under the Australian Department of Immigration and Border Protection’s Business Innovation and Investment program and Investor Retirement visa (Sub class 405) program. Discount The amount by which the value of a security is less than its face value. Face Value The amount of money indicated on a security, or inscribed in relation to a security, as being due to be paid on maturity. Fixed Interest Interest on investments such as bonds and debentures, paid at a predetermined and unchanging rate for a specified period, the life of the bond or debenture. Floating Rate Note Medium to longterm debt securities carrying a variable interest rate adjusted periodically by a margin against a benchmark rate. Government Business Divisions Entities that operate on a commercial and have a significant proportion of their operating cost recovered through charges on goods and services provided to users. Government Owned Corporations Entities that operate on a commercial basis whose operations are not guaranteed by the Crown and do not make the Territory liable for its debts, liabilities or obligations. Inscribed Securities for which the ownership is recorded in a registry. The owner is issued with a certificate, which is not itself transferable. The stock can only be transferred by use of the appropriate documents. Interest Rate Risk Exposure to loss resulting from a change in interest rates. Hedging strategies are designed to minimise, possibly eliminate, interest rate risk. Local Authorities Town, municipal and shire councils within the Territory. Margin The difference between a benchmark interest rate and the rate charged to an individual borrower. It is sometimes called the spread. Maturity Date The date on which the final bond payment is to be made. Operational Risk The risk of loss, whether direct or indirect, arising from inadequate or failed internal processes, people or systems, or from external events. It encompasses risks inherent in the agency’s operating activities such as fraud risk, settlement risk, legal risk, accounting risk, personnel risk and reputation risk. Premium The amount by which the value of a security is greater than its face value.
AR-NTTC-1314.docx