funnel sinking fund

funnel sinking fund definition - business

funnel sinking fund

A special type of bond retirement system in which an issuer has the option to make all its outstanding bonds subject to one annual sinking fund requirement. Thus, the issuer may take the annual sinking fund requirements for all outstanding issues and concentrate them into retiring an unusually large amount of a high-coupon issue.

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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