Held-to-maturity (HTM) securities are debt securities that a company or an investor intends to hold until maturity. These securities are typically purchased with the intention of collecting the interest payments and principal repayment at maturity rather than selling them before maturity to realize capital gains or losses.
Held-to-maturity securities are recorded on the balance sheet at their amortized cost, which is the initial purchase price plus any accrued interest, minus any principal payments received. The value of these securities is not subject to daily market fluctuations as they are not revalued to their current market value — aka they are not marked-to-market.
Examples of held-to-maturity securities include government bonds, corporate bonds, and municipal bonds.