Understanding Forward-Bearing Financial Instruments: A Guide for Investors

Forward-bearing refers to a financial instrument, such as a bond or a loan, that has a maturity date in the future. In other words, it is a long-term debt obligation that is not due for repayment until a later date.

For example, if you purchase a 10-year bond with a face value of $1,000 and a coupon rate of 5%, you would receive interest payments of $50 every six months (or semi-annually) over the course of the next 10 years. At the end of the 10-year period, the bond would mature and you would receive your original principal amount of $1,000 back.

Forward-bearing instruments are commonly used by companies and governments to finance long-term projects or operations, as they provide a predictable stream of income over a longer period of time. They can also be traded on financial markets, allowing investors to purchase and sell these instruments based on their expected returns and risk profiles.