How Do You Spell BOND JUMPER?

Pronunciation: [bˈɒnd d͡ʒˈʌmpə] (IPA)

The term "bond jumper" can be spelled using the International Phonetic Alphabet (IPA) as /bɑnd ˈdʒʌmpər/. The first syllable is pronounced with the vowel sound as in "father" followed by the consonant sound of "n" and the "dʒ" sound as in "judge" in the second syllable. The third syllable has the vowel sound as in "cup" and the final syllable is pronounced like the word "per". This term refers to a bond that has defaulted, where the holder has chosen to sell it instead of waiting for payment.

Meaning and Definition
Etymology
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BOND JUMPER Meaning and Definition

  1. A bond jumper refers to an individual or entity that defaults on their debt obligations by intentionally failing to make interest or principal payments on a bond. This term is commonly used in the world of finance and investing. When a bond is issued, it represents a loan made by the investor to the issuer, who then promises to make regular interest payments and repay the principal amount at maturity. However, a bond jumper deliberately chooses to default on these obligations, disregarding the contractual agreement that they had entered into with the bondholder.

    There are various reasons why a bond jumper may choose to default, such as financial distress or the anticipation that defaulting will be more beneficial to their overall financial situation. Bond jumping can ultimately harm the bondholder, who is left without the expected interest payments and potential loss of the principal invested.

    The act of bond jumping can have significant consequences for the bond jumper. It can damage their reputation and credibility, making it harder for them to secure future financing. Additionally, legal actions may be taken against bond jumpers to recover the outstanding debt. Bond jumpers may also face increased borrowing costs as their creditworthiness is negatively impacted.

    Overall, a bond jumper is someone who deliberately defaults on their debt obligations by failing to make interest or principal payments on a bond.

Etymology of BOND JUMPER

The term "bond jumper" is a compound noun composed of two words, "bond" and "jumper".

The word "bond" originated from the Middle English word "band", which can be traced back to the Old English word "bendan" meaning "to bind". Over time, "band" evolved to "bond" in English. It refers to a financial instrument or security representing a debt owed by an entity (typically a government or a corporation) to an investor.

The word "jumper" has a separate etymology. It is derived from the Middle English word "jumpe" which comes from the Old French word "jumper" meaning "to dance or jump". The verb "jumper" refers to the act of jumping.

In the context of finance, a "bond jumper" typically refers to someone who fails to make the required payments on a bond, essentially defaulting on the debt.