Debt Instrument

A debt instrument is a tool that an individual, government, or business entity can use to obtain capital. Credit cards, credit lines, loans, and bonds can all be types of debt instruments. The term debt instrument is used primarily for institutions that are trying to raise capital, usually in the form of a revolving line of credit that is not typically associated with a primary or secondary market. More complex debt instruments involve an advanced contract structure and the involvement of multiple lenders or investors, usually via an organized marketplace.

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