Par
Asset-Backed Securities glossary · CLOs & Structured Credit
Definition
The stated or nominal amount of a bond. Sometimes used to refer to 100 (i.e., trading at par).
Par in plain English
"Par" is a bond's official face value, the round number printed on it, like the $1,000 a bond promises to pay back at the end. It's the baseline everyone measures against: prices are quoted as a percentage of par, so "100" means the bond is trading at exactly its face value, "98" means slightly below, "102" slightly above. Think of a $50 gift card, its par is $50 no matter what someone will actually pay you for it today. Why care? Because whether a bond trades above or below par instantly tells you if buyers think it's worth more or less than its promise.
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