Authority Bond

A debt security issued by an authority, such as a corporate or government agency, for purposes of financing the operations of a revenue-generating public business. Investors in authority bonds have a claim to the business's revenues, which serve as the bond's yield.

An authority bond is very similar to a municipal bond. Both are issued by an authoritative group, but the projects will typically be of differing natures. Additionally, authority bonds can incorporate margin protections, providing some insurance for the holders.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • Industrial Development Authority bond — ( IDB) A special type of revenue bond issued by municipal authorities established to promote economic development in their communities. A community establishes an Industrial Development Authority to act as a conduit. A business that would… …   Financial and business terms

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  • local authority bond — /ˌləυk(ə)l ɔ: θɒrəti bɒnd/ noun a fixed interest bond, repayable at a certain date, used by a local authority in order to raise a loan and similar to a Treasury bond …   Dictionary of banking and finance

  • housing authority bond — / haυzɪŋ ɔ:ˌθɒrəti bɒnd/ noun a bond issued by a US municipal housing authority to raise money to build dwellings …   Dictionary of banking and finance

  • public housing authority bond — bonds of local public housing agencies that are secured by the federal government and whose proceeds are used to provide low rent housing. Bloomberg Financial Dictionary …   Financial and business terms

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  • bond — A certificate or evidence of a debt on which the issuing company or governmental body promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. A long term debt… …   Black's law dictionary

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