HomeDefinitionsCompareDebt Cushion bondsThe financial definition for Cushion bonds:High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable noncallable bond would sell. Cushion bonds offer considerable downside protection in a falling market. Similar Matches20% cushion rule20% cushion ruleGuideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least 20% to allow for unforeseen expenses. CushionCushionThe minimum period between the time a bond is issued and the time it is called. Cushion theoryCushion theoryThe theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock. Further SuggestionsRedemption cushionSafety cushion Click to compare definitions of Cushion bonds Click to view definitions beginning cu |