Utility Revenue Bond

DEFINITION of 'Utility Revenue Bond'

A type of municipal bond that is issued to finance utility projects, such as electrical plants, water systems, sewer systems or any other type of public utility. A utility revenue bond is repaid from monies earned through the utility improvements, once the project has been completed and the utility is operating.


BREAKING DOWN 'Utility Revenue Bond'

A bond is an interest-bearing or discounted debt security that is issued by a government or corporation in order to raise funds for capital projects. Generally, utility revenue bonds have one year's worth of debt service in what is called a reserve fund, to protect bondholders in the event that the project is not completed on time (and is not earning revenue) or where revenues are otherwise less than anticipated.


RELATED TERMS
  1. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
  2. Electric Utilities Industry ETF

    An exchange-traded fund that invests in companies which generate ...
  3. Total Utility

    The aggregate level of satisfaction or fulfillment that a consumer ...
  4. Utility

    1. An economic term referring to the total satisfaction received ...
  5. Revenue Bond

    A municipal bond supported by the revenue from a specific project, ...
  6. Expected Utility

    An economic term summarizing the utility that an entity or aggregate ...
Related Articles
  1. Markets

    Trust In Utilities

    Even in times of economic turmoil, utilities can be a good investment.
  2. Markets

    The Debt Report: The Utilities Sector

    Discover how blue chip U.S. utilities companies are using debt, and why it was important for the industry to deleverage after the financial crisis.
  3. Markets

    Are Safe Haven Utility Stocks, ETFs Too Expensive?

    With so many investors seeking safety are utility stocks and ETFs a crowded trade?
  4. ETFs & Mutual Funds

    The Top 5 Utility ETFs for 2016 (XLU, IDU)

    Discover the top utility company ETFs, and learn more about how you can get exposure to water, electricity and natural gas utility companies.
  5. Investing

    Why Utility Stocks Are No Longer a Safe Haven

    Utility stocks have been the best performing sector in the S&P 500 Index so far this year but many believe they are now overvalued.
  6. ETFs & Mutual Funds

    5 Popular Utilities ETFs in 2016 (XLU, NEE)

    Discover how the five most popular utilities ETFs for 2016 can add growth and income to your portfolio. Four of these utilities ETFs outperformed the S&P 500.
  7. ETFs & Mutual Funds

    ETF Flows: Utilities ETFs Stand Tall in 2016

    Find out which utilities exchange-traded funds (ETFs) have benefited the most from the huge surge in fund inflows in the early part of 2016.
  8. ETFs & Mutual Funds

    The Top 5 Utility Mutual Funds for 2016

    Understand how utilities equities play a role in asset allocation, and discover the best utilities mutual funds to consider for 2016.
  9. ETFs & Mutual Funds

    Utilities ETFs to Date 2016 Performance Review (UPW, FXU)

    Discover the best and worst performing exchange-traded funds (ETFs) within the domestic and international utilities sector year-to-date.
  10. ETFs & Mutual Funds

    Top 4 Utilities Mutual Funds

    Discover which mutual funds in the utilities industry are top rated, and learn how investors can include utilities as part of an asset allocation strategy.
RELATED FAQS
  1. What kind of investors buy utility stocks?

    Take a look at why income investors like utilities, why value investors might like utilities and why growth investors tend ... Read Answer >>
  2. To what extent are utility stocks affected by changes in interest rates?

    Explore the current state of the utilities sector, and learn about the different ways an increase in interest rates may impact ... Read Answer >>
  3. What are the top investing strategies for investing in the utility sector?

    Employ the right strategies when investing in the utility sector, and you can see consistent returns with less risk than ... Read Answer >>
  4. How many different types of utility stocks are there?

    Learn more about utility stocks and about some of the differences between different kinds of utility companies, including ... Read Answer >>
  5. What are the main factors that drive share prices in the utilities sector?

    Learn why the share prices of companies in the utility sector have sensitivity to interest rates and to changes in the amount ... Read Answer >>
  6. What is the average annual growth rate of the utilities sector?

    Learn about the average annual growth rate for utilities companies' revenues and earnings per share over the last five years ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center