Definition
Sinking fund
A fund set up to accumulate money on an on going basis, for the purpose of redeeming debt securities or preferred stock.
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bond sinking fund investment & finance definition
See sinking fund provision.
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Sinking Fund - A fund into which moneys are placed to be used to redeem securities in accordance with a redemption schedule in the bond contract. This term is sometimes used interchangeably with the term "mandatory redemption fund.
Sinking Fund Call
A provision allowing a bond issuer the opportunity to buy outstanding bonds from bondholders for a set rate, using money (a sinking fund) from the issuer's earnings saved specifically for security buybacks.
Sinking Fund A requirement specified in a bond indenture that obligates the firm to annually retire a specified portion of the debt.
SML (Security Market Line) Line representing the relationship between required return and beta.
Sinking Fund
Money regularly set aside by a company to redeem its bonds, debentures or preferred stock from time to time as specified in the indenture or charter.
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Sinking fund requirement
A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.
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Sinking fund
Money set aside by an issuer of bonds on a regular basis, for the specific purpose of redeeming debt. Bonds with such a feature are known as "sinkers."
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Sinking Fund - Money that a company sets aside periodically to fund the redemption of its bonds or preferred stock.
Sinking Fund Defeasance
The legal termination of the sinking fund call options of an outstanding bond issue usually due to the advance refunding of the issue.
Sinking-Fund Schedule ...
Sinking fund
A fund to which money is added on a regular basis that is used to ensure investor confidence that promised payments will be made and that is used to redeem debt securities or preferred stock issues.
Sinking Fund Redemption. Requires the issuer to regularly set aside money for the redemption of the bonds before maturity.
Sinking Fund
A sinking fund is method of repaying a bond in which the borrower sets money aside with a trustee, ...
Sinking fund Bond:
A bond with gradual retirement of the original issue at specified dates (usually coupon dates). For certain serial issues, a drawing (or lottery) determines which bonds of the original issue are retired early.
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Sinking Fund
Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues.
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Sinking fund A custodial account used by a bond issuer (such as a corporation or government body) to place a predetermined amount each year toward payment of the principal on its bond issue.
[ITDS] The payment of the principal amount of an issue by a series of periodic payments either directly to bondholders or to a sinking fund and thence to bondholders.
sinker A bond whose interest and principal payments are made via a sinking fund. sinking fund A type of fund, where a firm sets aside money over time, in order to retire...
Balloon maturityAny principal due at maturity for a bond with a sinking fund requirement. Bank discount basisA convention used for quoting bids and offers for Treasury bills in terms of annualized yield based on a 360-day year.
class of CMO that has the most stable cash flows and the lowest prepayment risk of any class of CMO Because of a stable cash flow, it is considered the least risky CMO (2) A CMO bond class that stipulates cash flow contributions to a sinking fund.
The fixed expenseses of corporations are typically regarded as the interest upon bonds, floating debts, and sinking funds.
Calculation used, where bonds are retired systematically during the life of the issue, as in a sinking fund. To satisfy its sinking fund requirements the issuer will buy its bonds on the open market.
What is different is that the issuer agrees to make the payments into a sinking fund that helps to ensure the redemption of the term bonds.
What are call provisions and sinking fund do these provisions make bonds more or less risky?
Deferred call provision refers?
What are call provisions and sinking fund provision?
The issuer has a mandated savings account (the sinking fund) and is required to make deposits into that account. Every so often-as detailed in the ...
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The issuer will buy its own bonds on the open market because of sinking fund requirements. If the bonds are trading below par, this provides automatic price support for these bonds. Hence they will normally trad ...
Total debt service coverage : Cash flow from operations after taxes + rentals + adjusted interest / interest + rent +current maturities + sinking fund payments
Total risk : Systematic risk plus unsystematic risk.
In corporate finance, DSCR refers to the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments.[1] ...
Long-Term Investments - bonds with maturities greater than one year, as well as the holdings of any stocks of other companies. Long-term investments also include special accounts such as pension funds, sinking funds, ...
 See also: Issue, Interest, Bonds, Bond, Investment
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