Transportation Bond

AAA

DEFINITION of 'Transportation Bond'

Fixed-income obligations of issuers that own and operate transportation systems such as ports, highways, bridges and public transit. Transportation bonds may also refer to bonds issued by companies that operate in the transport sector, including airlines, railroads and trucking companies.

INVESTOPEDIA EXPLAINS 'Transportation Bond'

Transportation bonds can also be issued by state governments to fund statewide projects. These bonds may therefore carry a higher credit rating than bonds issued by transport companies. The ability of transportation issuers to service their bonds depends on a number of factors including the state of the economy, competition from other modes of transport and the extent of government subsidization.

RELATED TERMS
  1. Utility Revenue Bond

    A type of municipal bond that is issued to finance utility projects, ...
  2. Maintenance Bond

    A type of surety bond purchased by a contractor that protects ...
  3. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  4. Bond

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

    A debt security issued by a state, municipality or county to ...
  6. Tax-Equivalent Yield

    The pretax yield that a taxable bond needs to possess for its ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. 3 Bonds You May Have Never Heard Of
    Bonds & Fixed Income

    3 Bonds You May Have Never Heard Of

  3. Avoid Tricky Tax Issues On Municipal ...
    Taxes

    Avoid Tricky Tax Issues On Municipal ...

  4. Learn How To Lower Your Second Mortgage ...
    Investing

    Learn How To Lower Your Second Mortgage ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center