What is the definition of a surety bond? A surety bond is a financial instrument that enables third parties to accept a certain amount of risk. They are generally necessary for a variety of scenarios, such as when starting a new firm or signing government contracts. The most popular reason for surety bonds is to […]
What is a Durable Medical Equipment Suppliers Bond, and how does it work? A Durable Medical Equipment Suppliers Bond is a sort of security that a company or individual may request before doing business with them. The purpose of the Durable Medical Equipment Suppliers Bond is to ensure that in the event of any disagreements
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Who Issues Performance Bonds? Performance bonds are issued by financial institutions, contractors, or government agencies. The person issuing the bond is generally referred to as the surety or obligor. A performance bond ensures that a principal (the person receiving the services) will not have any out-of-pocket costs if a contractor fails to perform as promised.
Who pays for the performance bond in international commodity trading? The importer – and importers – do. Unfortunately, the buyer of the import often thinks the seller pays for the bond. That is why some industry players believe that as much as $1 billion (US) worth of commodities each year don’t move because buyers insist
What is Ponax Performance? Ponax is a bond fund that invests in high-quality, short-term bonds with some exposure to credit risk. The current portfolio is 70% AAA & AA rated. It has been stated by Ponax’s reps that the bond funds are “tax optimized”, but it does not seem so at first glance. All of
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Why Need a Performance Bond for Gold Trade? The advent of the Gold Futures Contract on Comex marked the first time that traders could speculate on the price of gold without actually having to purchase physical metal. The contract was introduced in December 1974 following a study by the Commodity Futures Trading Commission (CFTC), which
Performance Bonds are issued by who? Performance Bonds are issued by surety companies. A Bond is basically an agreement in which one party promises to pay another, usually on the fulfillment of certain conditions, such as completion of work specified in a contract or payment of taxes. A Performance Bond guarantees that a construction project
Performance Bonds are issued by who? Financial firms, contractors, and government entities all issue performance bonds. The surety, also known as the obligor, is the individual who issues the bond. If a contractor fails to deliver as promised, a performance bond ensures that the principal (the person receiving the services) will not incur any out-of-pocket
In international commodity trading, who pays for the performance bond? The importer – and importers – are the ones who do it. Unfortunately, many import buyers believe the seller is responsible for the bond. That’s why some industry insiders estimate that as much as $1 billion (US) in commodities is left on the table each
What is Ponax Performance, and how does it work? Ponax is a bond fund that invests in high-quality, short-term bonds with a credit risk component. Currently, 70% of the portfolio is AAA and AA rated. The fund’s track record can be found on my blog here. Ponax representatives claim that the bond funds are “tax
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