Parity Bond

Parity Bond

A bond with an equal claim on some right as another bond. A new issue of a bond may be issued as a parity bond, which indicates that it carries the same rights as bonds already issued. For example, unsecured bonds are all parity bonds with respect to each other; this means that no one bond has a prior claim to a coupon over any other. However, all unsecured bonds are junior to any secured bonds, which are likewise parity bonds, with respect to other secured bonds. See also: Pari passu.
References in periodicals archive ?
2 million in administration funds had been embezzled from the project accounts of two parity bond issues.
In addition, the current high levels of debt service coverage could be eroded if additional future direct loans are not pledged to additional parity bond issues.
While future parity bond issuance is likely given the system's capital plan and ongoing review of facility needs, Fitch expects coverage to remain well above the additional bonds test level.
The city expects to issue an additional $22 million in parity bonds in fiscal 2008 to finance the acquisition of the water treatment plant as originally planned when the city entered into the design/build/operate with purchase option contract in 2003.
1 million in outstanding parity bonds for a net present value savings estimated at 4%.
15x debt service coverage on all parity bonds including the proposed issue.
Fitch also affirms the 'A' rating on Montclair State University's (MSU) outstanding parity bonds listed below.
Coverage is strong for the new and parity bonds, as well as the remaining issuance under the program.
692 million of outstanding parity bonds payable from non-ad valorem revenues 'AA+';
In addition, the Tribe may issue up to $50 million in parity bonds to fund construction of a tribal museum.