What is a Bondholder?
A bondholder is an investor who owns a bond, which is a type of debt security. Bondholders are the parties who lend money to the issuer (usually a corporation or government) in exchange for regular interest payments and the return of their principal investment at maturity.
Bondholders have a claim on the assets of the issuer and are paid before common shareholders in the event of liquidation. They also have the right to receive interest payments, which are typically made semi-annually or annually, and to have their principal repaid at maturity.
Bondholder is an important term in finance and investing, as it refers to the individuals or organizations that own bonds and receive regular income from them. Bondholders play a critical role in the capital markets, as they provide funding for companies and governments looking to raise capital for various purposes.