Bellwether Issue

(redirected from Current Coupon Bonds)

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 ?
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.