companion bond

companion bond definition - business

companion bond

In a collateralized mortgage obligation, a class of bonds most likely to be retired early from mortgage prepayments. Companion bonds entail more payment risk and generally offer higher returns compared to other bonds from a CMO.

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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