Bond Buyer 20

DEFINITION of 'Bond Buyer 20'

A representation of municipal bond trends based on a portfolio of 20 general obligation bonds that mature in 20 years. The index is based on a survey of municipal bond traders rather than actual prices or yields. The Bond Buyer 20 is published by The Bond Buyer, a daily financial publication.

Also referred to as the "20 Bond Index".

BREAKING DOWN 'Bond Buyer 20'

The average rating of the 20 bonds that make up the index are grade 'Aa2' (Moody's rating) or grade 'AA' (S&P 500 rating). The bond buyer 20 index is simply a theoretical and estimated average of bond yields.

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RELATED FAQS
  1. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>
  2. What is the relationship between the current yield and risk?

    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
  3. Who or what is backing municipal bonds?

    Municipal bonds are backed by dedicated taxes or revenue sources related to specific projects, or by the full faith and credit ... Read Full Answer >>
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    Stability is relative in the municipal bond market. Municipal bonds tend to be safer than many other types of investments, ... Read Full Answer >>
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