Revolver bond

Short description: Financial product

Securities

Securities

* Banknote
* Bond
* Debenture
* Derivative
* Stock

Markets

* Stock market
* Commodity market
* Foreign exchange market
* Futures exchange
* Over-the-counter market (OTC)
* Spot market

Bonds by coupon

* Fixed rate bond
* Floating rate note
* Inflation-indexed bond
* Perpetual bond
* Zero-coupon bond
* Commercial paper

Bonds by issuer

* Corporate bond
* Government bond
* Municipal bond
* Pfandbrief

Equities (stocks)

* Stock
* Share
* Initial public offering (IPO)
* Short selling

Investment funds

* Mutual fund
* Closed-end fund
* Exchange-traded fund (ETF)
* Hedge fund
* Index fund
* Segregated fund

Structured finance

* Securitization
* Agency security
* Asset-backed security
* Mortgage-backed security
* Commercial mortgage-backed security
* Residential mortgage-backed security
* Tranche
* Collateralized debt obligation
* Collateralized fund obligation
* Collateralized mortgage obligation
* Credit-linked note
* Unsecured debt

Derivatives

* Forward
* Futures
* Option
* Swap
* Warrant
* Credit derivative
* Hybrid security

* v
* t
* e

A revolver bond is a financial product, a variant of a regular bond or other debt security.

In the example of a regular bond issue, when a corporation purchases a government bond for a notional amount, the government in question agrees to pay interest on that amount to the corporation until the bond maturity.

In the case of a revolver bond, while the buyer and seller agree to a notional amount, they also agree that the buyer has the right to "draw" upon a certain amount of the notional and the seller will only pay interest on this drawn amount, which can be any value up to the original notional. No interest will be paid on the undrawn amount.

## See also

* Revolving credit
* Revolving account

## References

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