Home > Terms > English, UK (UE) > yield burning
yield burning
A municipal bond financing method. Underwriters in advance refundings add large markups on US Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonds after issuance of the new bonds. Since bond prices and yields move in opposite directions, when the bonds are marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues.
0
0
Improve it
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: General Finance
- Company: Bloomberg
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
Industry/Domain: Religion Category: General religion
Ouroboros
A symbol of a snake curled around in a circle and biting its own tail. It is originally ancient Egyptian iconography but also appears in a similar ...
Contributor
Featured blossaries
Browers Terms By Category
- Printers(127)
- Fax machines(71)
- Copiers(48)
- Office supplies(22)
- Scanners(9)
- Projectors(3)
Office equipment(281) Terms
- Biochemistry(4818)
- Molecular biology(4701)
- Microbiology(1476)
- Ecology(1425)
- Toxicology(1415)
- Cell biology(1236)
Biology(22133) Terms
- Cooking(3691)
- Fish, poultry, & meat(288)
- Spices(36)
Culinary arts(4015) Terms
- Conferences(3667)
- Event planning(177)
- Exhibition(1)
Convention(3845) Terms
- Bridge(5007)
- Plumbing(1082)
- Carpentry(559)
- Architecture(556)
- Flooring(503)
- Home remodeling(421)