Bond Anticipation Note - BAN

Dictionary Says

Definition of 'Bond Anticipation Note - BAN'

A short-term interest-bearing security issued in the anticipation of larger future bond issues.
Investopedia Says

Investopedia explains 'Bond Anticipation Note - BAN'

Bond anticipation notes are smaller short-term bonds issued by governments and corporations. Knowing that the proceeds of the larger future issue will cover the anticipation notes, the issuing bodies use the notes as short-term financing.

Related Definitions

  • Bond

    A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used ...
    Read More »
  • Creditor

    An entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back at a later date. Creditors can be classified as either ...
    Read More »
  • Debt

    An amount of money borrowed by one party from another. Many corporations/individuals use debt as a method for making large purchases that they could not afford under normal ...
    Read More »
    • Debt Financing

      When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the ...
      Read More »
    • Equity Financing

      The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ...
      Read More »
    • Project Finance

      Defined by the International Project Finance Association (IPFA) as the following: The financing of long-term infrastructure, industrial projects and public services based upon a ...
      Read More »
    • Tax Anticipation Note - TAN

      A short-term debt security issued by a state or local government to finance an immediate project that will be repaid with future tax collections. State and local governments use tax ...
      Read More »
    • Revenue Anticipation Note - RAN

      A short-term debt security issued on the premise that future revenues will be sufficient to meet repayment obligations.
      Read More »
    • Construction Loan Note - CLN

      A short-term obligation in the form of a note, used for the funding of construction projects such as housing developments. In most cases, the note issuers will repay the note obligation ...
      Read More »
    • Anticipation Note

      A short-term obligation that is issued for temporary financing needs by a municipality. The principal payoff may be covered by a future longer-term bond issue, taxes or other form of ...
      Read More »

Articles Of Interest

Partner Links