non-marketable debt

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Debt for which there is no secondary market. The holders of such debt may have to wait until it falls due for redemption, or may be able to get it redeemed by the borrower at any time, but possibly on terms involving some penalty. This is the position, for example, with National Savings certificates in the UK. Holders cannot sell their rights to anybody else, though they may be used as collateral for loans from other financial institutions.

Subjects: Economics.

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