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: Government Category: U.S. election

47 percent

An infamous term used by the 2012 Republican presidential candidate Mitt Romney to describe the percentage of voters who relied too much on the ...

Featured blossaries

Top 10 Most Venomous Snakes

Category: Animals   1 10 Terms

How to Stay Motivated in MLM

Category: Business   1 7 Terms

Browers Terms By Category