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. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Utility Revenue Bond

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

    A type of surety bond purchased by a contractor that protects ...
  4. Credit Quality

    One of the principal criteria for judging the investment quality ...
  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. Bonds & Fixed Income

    The Basics Of Municipal Bonds

    Investing in these bonds may offer a tax-free income stream but they are not without risks.
  2. Bonds & Fixed Income

    3 Bonds You May Have Never Heard Of

    These lesser-known bonds may give your portfolio a boost when other investments products fall short.
  3. Taxes

    Avoid Tricky Tax Issues On Municipal Bonds

    Learn the rules every investor should know before buying into this "tax-free" investment.
  4. Personal Finance

    Resume Tips For Internships

    Here's how to put together a strong resume for an internship that can open the way to your field of dreams.
  5. Taxes

    Will Itemized Deductions Get You A Bigger Refund?

    April and taxes are due soon. If you need to file your return, you might have to decide if itemizing your deductions this year will net you a better deal.
  6. Investing

    Cloud Investments: Profitable If Chosen Carefully

    By owning stock in cloud-based service companies, you can follow the latest trends and make money from the explosive growth in the cloud industry.
  7. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  8. Investing

    What Tech Companies Seeking Funding Must Overcome

    Tech companies face a unique set of challenges, including a need for timely responses to changes in technology and difficulty recruiting the right talent.
  9. Investing

    How To Trade Foreign Stocks

    We weigh the major ways to trade foreign stocks for investors.
  10. Investing

    Why Is Arbitrage Trading Legal?

    Not only is arbitrage legal in the US and most developed countries, it can be beneficial to the overall health of a market.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center