Combination Bond

Filed Under » ,
Dictionary Says

Definition of 'Combination Bond'

A bond, typically a municipal bond, that has financial backing from two sources: the issuing agency and the revenue from an existing or proposed source that will benefit from the funding.

Also known as "double barrel bonds".
Investopedia Says

Investopedia explains 'Combination Bond'

Combination bonds differ from obligation municipal bonds, which have just the "full faith and credit" backing of the issuing government agency, and revenue bonds, which only have the backing of future revenues. Because of the extra safety provided by combination bonds, they  pay a lower rate than comparable general obligation or revenue bonds.

Related Definitions

Search results for

'Combination Bond'

  • Key Strategies To Avoid Negative Bond Returns

    http://www.investopedia.com/articles/bonds/12/avoid-negative-bond-returns.asp
    ... The Bottom Line Despite the nearly infinite combination of strategies that can be
    employed ... to investors may be to hold a diversified mix of bond classes across ...

  • Find The Right Bond At The Right Time

    http://www.investopedia.com/articles/bonds/08/bond-choice.asp
    ... Income can be derived from coupon payments, or a combination of coupon
    payments and the return of principal at a bond's maturity. ...

  • 13 Pre-Issue Corporate Bond Questions For Businesses

    http://www.investopedia.com/articles/bonds/09/corporate-bonds.asp
    ... Learn more in Bond Taxation Rules.); Which market would be optimal for the ... be used
    instead of the capital markets, either exclusively, or in combination, and if ...

  • 5 Ways To Fund Your Retirement

    http://www.investopedia.com/articles/retirement/08/retirement-income-stream.asp
    ... income, including a portfolio structured to include an immediate annuity, a systematic
    withdrawal program, a bond ladder, a CD ladder or a combination of these ...

  • Top 5 Low-Risk Investments To Close Out 2011 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/Top-5-Low-Risk-Investments-To-Close-Out-2011.aspx
    ... as rapidly as the emerging ones, but still offer a decent combination of growth ... The
    risk is that rates rise and would push bond prices down because they move ...

  • The Bear On Bonds

    http://www.investopedia.com/articles/bonds/09/bear-on-bonds.asp
    ... The rate earned on these bonds is actually a combination of two rates: a fixed interest
    rate set when the investor buys the bond and a semiannual variable rate ...

  • Investing In A Unit Investment Trust

    http://www.investopedia.com/articles/basics/09/unit-investment-trust.asp
    ... national and state), foreign government bonds or a combination of issues. (Find
    out if you need exposure to debt instruments in the Bond Tutorial.) Early ...

  • Who Needs Bonds When You Can Have Income Mutual Funds?

    http://www.investopedia.com/articles/mutualfund/09/fixed-income-securities-income-funds.asp
    ... These funds can invest in either debt or equities or a combination of both. ... Bond
    Funds This is generally the most recognized category of income funds, and ...

  • Mergers & Acquisitions: An Avenue For Profitable Trades

    http://www.investopedia.com/articles/forex/05/MA.asp
    ... A Leading Indicator For Forex, we looked at how movements in the bond market can
    be ... In basic terms, mergers and acquisitions are a combination of two or more ...

  • 3 Bonds You May Have Never Heard Of

    http://www.investopedia.com/articles/bonds/09/lesser-known-bonds.asp
    ... SEE: Bond Basics Tutorial CDOs and Tranches A collateralized debt obligation (CDO ...
    This combination would protect the fund's principal from lower rated debtors ...

Related Articles

Partner Links