I have certificates from debentures given to me by my previous employer. What can I do with them? Nico-Louis Minnie, the head of wealth management platforms at Liberty Investments, replies:
This is quite an interesting question, especially since it is called a debenture and not a bond. Debentures are like bonds issued by companies and they can pay regular interest, a final redemption payment, or both. They are not actively traded and the issuer maintains a debenture roll, which contains the details of the debenture holders. They are all fixed term and since they are not actively traded, one generally has to hold them to maturity, when the issuer will pay out either cash or shares, depending on the actual wording of the contract.
You need to get in contact with your previous employer to find out when the debenture matures and will be paid out. You should also find out if you’re entitled to any regular interest payment or if all the interest is paid on the date of maturity.