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 ...
Yield Burning
Financial & Investment Dictionary:
Yield Burning
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Yield Burning - The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond.
Yield Burning - Is the activity whereby yields on treasury securities were (artificially) lowered to purchasing municipal organizations by raising the prices of those treasury or equivalent securities.
yield advantage The different between a corporation's convertible securities and its dividend yield on common stock yield burning An illegal transaction in which an underwriter uses excessive markups on bonds...
The advantage gained by purchasing convertible securities instead of common stock, which equals the difference between the rates of return of the convertible security and the common shares.
Yield burning ...
 See also: Escrow, Call date, Yield spread, Refunding, Yield curve
  
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