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
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

Harry8L
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: History Category: British history

Black Hole of Calcutta

A dungeon located at Fort William in Calcutta. It is notable as many British prisoners of war were held in this dungeon when it was captured by the ...

Featured blossaries

The Most Bizzare New Animals

Category: Animals   3 14 Terms

Hypertension (HTN) or High Blood Pressure

Category: Health   3 12 Terms

Browers Terms By Category