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Bear Bond
(redirected from Bear Bonds)

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Bear Bond
A bond that is likely to increase in price when stocks or the economy at large is performing poorly (that is, when interest rates are rising). Interest-only bonds and mortgage-backed securities that pay only interest are common examples of bear bonds because, in a bear market, people tend to pay only interest on large debts. See also: Flight to Safety.


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The interest rate on both the bull bonds and the bear bonds converts to a fixed rate following a prespecified conversion date, typically the first call date.
 
 
 
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