Special assessment bond

Definition:

A municipal bond with interest paid by the taxes of the community benefiting from the bond-funded project.

Investing Essentials


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

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Competition ahead

Often used in risk arbitrage. Situation whereby another OTC market maker has transacted with investment bank at the stated market level before the bid/offer has been made.

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