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

Central Counterparty Clearing House

An organization in European countries that helps facilitate trading done in European derivatives and equities market.

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