5 ms·

Not sure why you think bonds are assets because they are not. Investment 101 stuff right there.

• krit_dms 7y ago
  right... Informs us all then - what is it? a liability?
  • kgwgk 7y ago
    It is a liability for the issuer :-)
  • McTossOut 7y ago
    illiquid, there's not much of a market for low value verbal agreements.
• cyraxjoe 7y ago
  Bond -> Financial Security -> Financial Asset -> "non-physical asset whose value is derived from a contractual claim". More details at: https://en.wikipedia.org/wiki/Financial_asset https://en.wikipedia.org/wiki/Financial_asset
  • raxxorrax 7y ago
    Theoretically... If I lend you 5 bucks, I don't really see it as an asset. I believe to call it what it is becomes even more important if we talk about asset bubbles...
    • kortilla 7y ago
      It’s debt owed to you. It can be sold off. It’s definitely an asset.
      • raxxorrax 7y ago
        Maybe, but certainly there is a distinction between that and me keeping the 5 bucks?
        • nopenotthatway 7y ago
          Risk and return and depreciation.
          • raxxorrax 7y ago
            True, but then it makes no sense to group them. Because one kind of asset can form bubbles much more likely and frequently.
            • kortilla 7y ago
              You still group them. All assets have risk, return, and (possible) depreciation.
• retube 7y ago
  A bond is an asset, just as shares are, as they are securities you can buy in exchange for future cash flows (contractual in the case of the bond, discretionary for the share). Both are only a liability for the issuer.