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Cushion bonds

The 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 Matches

20% cushion rule

20% cushion rule
Guideline 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.


Cushion

Cushion
The minimum period between the time a bond is issued and the time it is called.


Cushion theory

Cushion theory
The theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock.


Further Suggestions

Redemption cushion
Safety cushion


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