A written agreement denoting that the issuer promises to reimburse a debt Examples are Treasury Bills, Notes and Bonds, Banker's Acceptances, Commercial Paper and Certificate of Deposits
Unlike equity vehicles, where the investor owns part or all of the asset, debt instruments are "IOUs" of an individual, partnership, company, municipality, or national government (e g , trust deeds, notes, bank CDs, bonds) When you invest in or buy a debt instrument, you are lending your money In return, the borrower (e g , bank, corporation, government) agrees to pay you interest plus your principal at some future date