Current Coupon Bond

Current Coupon Bond

Bonds on which the coupon is set approximately equal to the bonds' yield to maturity at the time of their issuance.

Bellwether Issue

A bond with a coupon that is close to market rates. Interest rates on bonds vary from time to time according to a number of factors, but are usually locked at issue. A bellwether issue is one with an interest rate very near to the prevailing rates, regardless of when it was issued. Bellwether issues are also called benchmark issues and perhaps, most commonly, current coupons bonds.
References in periodicals archive ?
Those effects were seen immediately on MBS yields for both Ginnie Mae and Fannie Mae, whose 30-year current coupon bond yields each fell roughly 50 basis points following the FOMC announcement.
Since the initial offering in 1985, more stock was issued, along with current coupon bonds with a face value of $335 million and $215 million in zero coupon bonds that have both since been retired.
Because many investors, particularly individual investors, prefer not to pay a price above par, premium often is generated with capital appreciation bonds (CABs), rather than current coupon bonds.