Yield Burning

0.03 sec.

Yield burning

A municipal bond financing method. Underwriters in advance refundings add large markups on US Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonds after issuance of the new bonds. Since bond prices and yields move in opposite directions, when the bonds are marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues.

Yield Burning

The practice of an investor deliberately attempting to raise the price of a bond in order to reduce its yield. Because the reduction of yield reduces the tax owed on the bond, yield burning is illegal.

yield burning

Marking up the prices by underwriters and thereby reducing, or burning, the yields of bonds to be placed in escrow as part of a municipal bond refunding. Yield burning benefits the underwriters at the expense of their clients.

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No references found			The SEC's Chairman hailed the settlement as a milestone in the federal effort to combat yield burning "in a way that protects innocent municipalities and bondholders," adding that "a dark cloud has been lifted from the municipal securities market. SEC Reaches Historic Yield-burning Settlement by Government Finance Review Collier County, Florida, is the named plaintiff on a yield burning class-action suit. Winter meeting 1999 by Government Finance Review Since the summer of 1996, state and local government issuers have faced the prospect of being compelled to enter into closing agreements with the Internal Revenue Service (IRS) to protect the tax-exempt status of advance refundings because of possible overpricing by bond underwriters - yield burning - in connection with the investment of the advance refunding bond escrows. Yield burning: federal agencies should pursue violators instead of ... by Esser, Jeffrey L. / Government Finance Review			Yaounde Convention Yard yard of concrete YAWN YDD YE Year Year Bill Year End Year Over Year Year to Date Year-End Bonus Year-End Dividend Year-End Rally Year-over-Year Year-to-Date Yellow Knight Yellow Sheets Yemeni Rial Yen Yen Bond YER yield Yield Advantage Yield Basis Yield Burning yield capitalization Yield Curb Yield Curve Yield Curve Note Yield Curve Option-Pricing Models Yield Curve Strategies Yield Curve Strategy Yield differential/pickup Yield Elbow yield equivalence Yield Maintenance yield maintenance premium Yield Pickup Yield Ratio Yield Spread yield spread premium Yield Spread Strategies Yield Spread Strategy Yield to Average Life Yield to Call Yield to Current Call yield to maturity Yield to Par Call yield to put Yield to warrant call			Yidgha Yidish YIDP Yids Yie Yie Yie Yie YIEA YIEC YIEIP YIEL yield yield yield yield yield yield yield Yield (chemistry) Yield (engineering) Yield (engineering) Yield (engineering) Yield advantage Yield Advantages Yield Analysis yield assent Yield Based Option Yield Based Options yield basis Yield Burning yield capitalization Yield curb Yield Curbs Yield curve yield curve note Yield Curve Notes Yield Curve Option Pricing Model Yield Curve Option Pricing Models Yield Curve Option-Pricing Model Yield curve option-pricing models Yield curve strategies Yield Curve Strategy yield curves Yield Difference Bonding Yield differential/pickup Yield Elbow Yield Elbows Yield equivalence yield factor Yield from Oxygen yield gain yield grade yield grade yield grade yield grade yield grade yield in opinion to Yield Maintenance Yield Maintenance

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