HomeDefinitionsCompareDebt Cushion theoryThe financial definition for 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. 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 bondsCushion bondsHigh-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. Further SuggestionsRedemption cushionSafety cushion Click to compare definitions of Cushion theory Click to view definitions beginning cu |