Clinton Bond

Dictionary Says

Definition of 'Clinton Bond'


A debt investment that is said to have no principal, no interest and no maturity value. A Clinton bond is in reference to President Bill Clinton's low-interest-rate policies that had bondholders lose billions of dollars early in his presidency. Inflation fears caused yields to increase temporarily, and the bond market collapsed. These fears were unfounded, however, with Clinton choosing to balance the budget instead of increasing the federal deficit, allowing bond prices to recover.

Investopedia Says

Investopedia explains 'Clinton Bond'


Former President Bill Clinton's well-documented "extravagances" formed the foundation for this type of bond. Clinton bonds are also known as "Quayle bonds", named after former Vice-President Dan Quayle. This rarely seen slang term is more often used to make a point, than to actually represent a market bond.

comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
Trading Center