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Collateral Trust Bonds

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Collateral trust bonds
A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond.

Collateral Trust Bond
A bond usually issued by a holding company that is collateralized with securities rather than physical assets. Holding companies are the primary issuers of these bonds because their primary operation is to hold stock in other companies; their main assets are these securities.


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During the decade preceding the sale of these collateral trust bonds, the composite earnings ratio of all rural electric distribution systems was within the 3.
The notes were sold to investors in three tranches: Secured Collateral Trust Bonds * $570 million of fixed-rate Collateral Trust Bonds rated A+/A+/A1 by Fitch Ratings, Standard & Poor's and Moody's Investors Service, respectively.
On March 12, 2007, Moody's Investors Service affirmed that it has assigned a credit rating of "A1" to CFC's collateral trust bonds, "A2" to CFC's medium term notes, "A3" to CFC's subordinated notes and "Prime-1" to CFC's commercial paper.
 
 
 
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