Parity Bond(redirected from Parity Bonds)
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.