equipment trust certificates - Investment & Finance Definition
A type of corporate bond that is issued by railroads (the largest issuer), airlines, or other transportation firms. The proceeds are used to purchase equipment such as railroad cars or airplanes, which then serve as collateral for the certificates. The maturity of equipment trust certificates is usually from 1 to 15 years, reflecting the fact that the equipment’s useful life is limited.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.