Conduit Financing

AAA

DEFINITION of 'Conduit Financing'

A financing arrangement involving a government or other qualified agency using its name in an issuance of fixed income securities for a non-profit organization's large capital project.

INVESTOPEDIA EXPLAINS 'Conduit Financing'

The government or other qualified agency is not responsible for paying the required cash flows to investors - all cash flows come directly from the project.

RELATED TERMS
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Economic Justice

    Economic justice is a component of social justice. It's a set ...
  6. Social Justice

    Social Justice is the idea that all members of society deserve ...
Related Articles
  1. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

  2. What You Need To Know About Preferred ...
    Trading Strategies

    What You Need To Know About Preferred ...

  3. Understanding The Bond Behemoth That ...
    Mutual Funds & ETFs

    Understanding The Bond Behemoth That ...

  4. Fund Firm Jolts: Pimco's Isn't The First ...
    Investing News

    Fund Firm Jolts: Pimco's Isn't The First ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center