Bear Bond

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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.
References in periodicals archive ?
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.
After the conversion date, both the bull bonds and bear bonds will pay |X~.
The market for bull and bear bonds is not as developed as the market for floaters and inverse floaters; hence the opportunities for successful issuance are fewer.