collateral trust bond

collateral trust bond definition - business

collateral trust bond

A long-term debt obligation with a claim against securities rather than against physical assets. This type of bond is issued primarily by holding companies that own mainly securities of subsidiaries. Also called trust certificate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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