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cushion bond

A fixed income security offering investors a high coupon payment that does not see as much of a decline in price due to rising interest rates than other bonds experience, and does not see as much of a price increase due to falling interest rates. A cushion bond sells at a premium. "Cushion" refers to the soft landing that the bond experiences during interest rate fluctuations.

Related information about cushion bond:
  1. Cushion Bond Definition | Investopedia
    A type of callable bond that sells at a premium because it carries a coupon rate that is above market interest rates. A cushion bond's call feature means that it will ...
     
  2. Cushion Bond - Financial Dictionary - The Free Dictionary
    A callable bond with coupons that are above prevailing interest rates. A cushion bond is more expensive than other bonds. If interest rates rise, the value of a ...
     
  3. What is cushion bond? definition and meaning
    Definition of cushion bond: A fixed income security offering investors a high coupon payment that does not see as much of a decline in price due to rising interest ...
     
  4. Cushion Bonds - Blackhaw Wealth Management
    The cushion bond - a callable bond trading at a premium to par value - offers the potential for higher return in a low rate environment, while providing protection ...
     
  5. cushion bond - Invest Definition
    cushion bond definition: A high-coupon bond that sells at a price only slightly above par ... A cushion bond has an unusually high current yield, little chance...
     
  6. Cushion Bond: Definition from Answers.com
    callable bond with a coupon above current market interest rates that is selling for a premium. Cushion bonds lose less of their value as rates rise and.
     
  7. What is CUSHION BOND? - The Law Dictionary
    Definition of CUSHION BOND: A CALLABLE BOND with a high COUPON that is selling for a PREMIUM. The cushion bond loses less value as rates rise and ...
     
  8. cushion bond - Municipal Securities Rulemaking Board
    CUSHION BOND – A bond trading at a higher dollar price than current coupon rates that is priced to the call and creates a substantially higher yield to maturity ...