Related Words

Active Bond Crowd: Refers to members of the bond department of the NYSE who trade the most bonds. Antithesis of cabinet crowd.

Municipal Revenue Bond: A bond issued to finance a public project that is funded by receipts from the project's operation.

Municipal Bonds: Bonds issued to finance public improvements such as parks, schools and urban renewal projects.

Municipal Bond Insurance: An insurance policy that guarantees payment on municipal bonds in the event the issuer defaults.

Nine-Bond Rule: An NYSE rule requiring that orders for nine bonds or fewer stay on the floor for one hour to seek a market.

Obligation Bond: Mortgage bond whose face value exceeds the value of the underlying property, and for which a personal obligation is created to compensate the lender for any costs that may exceed the value o . . . View Full Definition

PAC Bond: Stands for Planned Amortization Class bond. A tranche class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes.

Optional Payment Bond: A bond whose principal and/or interest may be paid in foreign or domestic currency at the discretion of the bondholder.

Municipal Bond Fund: Municipal bond mutual funds invest in municipal bonds. Earnings from these funds are always free of federal income tax for all shareholders in the fund. In addition, some mutual fund compani . . . View Full Definition

Par Bond: A bond trading at its face value.