Sour bond

Definition:

A bond issue that has defaulted on interest or principal payments, and will thus trade at a large discount and a poor credit rating.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Presidential election cycle theory

A theory that stock market trends can be predicted and explained by the four-year presidential election cycle.

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