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Safety cushion

The financial definition for Safety cushion:

In a contingent immunization strategy, the difference between the initially available immunization level and the safety-net return.




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 bonds

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.


Further Suggestions

Cushion theory
Redemption cushion


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Safety cushion
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