FINANCIAL INSTRUMENTS
Financial instruments are monetary agreements between parties that can be created, traded, modified, and settled They may include cash (currency), evidence of ownership in an entity, or rights to receive or deliver currency (forex), as well as debt (bonds, loans), equity (shares), and derivatives (options, futures, forwards). These can be classified by "asset class" based on whether are equity-based (indicating ownership of the issuing entity) or debt-based (indicating a loan to the issuing entity). Debt instruments can further be divided into short-term (less than year) and long-term. Foreign exchange instruments and transactions do not under debt or equity categories, forming their own distinct classification.
SBLC
Stand By Letter of Credit
Simply involves converting a bank instrument (Bank Guarantee or Standby Letter of Credit) into liquid cash/legal tender mainly for purpose of project funding. The requirement for any bank instrument to be monetized remains that such Standby Letter of credit or Bank Guarantee must be issued by a well rated bank.
MTN
Mid Term Note
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Bank Guarantee
A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. The guarantee lets a company buy what it otherwise could not, helping business growth and promoting entrepreneurial activity. There are different kinds of bank guarantees, including direct and indirect guarantees.
LC
Letter of Credit
