Definition
A negotiable financial instrument that serves as evidence of a promise by the issuer (the borrower) to make one or more payments to the holder (the lender) on a specified future date or dates.
Further information
These securities usually carry a specific interest rate (the coupon) and/or are sold at a discount to the amount to be paid at maturity. The category of debt securities includes financial assets and liabilities that can be described according to different classifications: by maturity, sector and subsector of the holder and issuer, currency, and interest rate type.
They are also commonly referred to as ‘securities other than shares’.
Debt securities can be distinguished according to their term:
Short-term: securities with an original maturity of one year or less and debt securities redeemable on demand by the creditor (category 3.1 of the financial instrument classification, according to the European System of Accounts 2010).
Long-term: securities with an original maturity of more than one year or with no stated maturity (category 3.2 of the financial instrument classification, according to the European System of Accounts 2010).
They can also be classified by the existence of coupon payments or not, or by their issuer.
Debt securities fall under category 3 of the financial instruments classification, according to the European System of Accounts 2010.
Classification of financial instruments (European System of Accounts 2010).
Related concepts
References
Update date: May 2025
