collateral trust bond

Collateral Trust Bond

A bond usually issued by a holding company that is collateralized with securities rather than physical assets. Holding companies are the primary issuers of these bonds because their primary operation is to hold stock in other companies; their main assets are these securities.

collateral trust bond

A long-term debt obligation with a claim against securities rather than against physical assets. This type of bond is issued primarily by holding companies that own mainly securities of subsidiaries.
References in periodicals archive ?
s collateral trust bonds incorporate these strengths: -- Sound capitalization based on Standard & Poor's capital adequacy model for bond insurance companies; -- Nominal historical losses and expected improvement in the loan portfolio's performance, resulting from the declining prevalence of generation loans; and -- Experienced senior management that possesses a thorough understanding of the rural electric cooperative industry.
Wednesday announced that it has commenced an offer to exchange its outstanding $140 million principal amount of First Collateral Trust Bonds, 7 1/2% Series A Due 2008, for an equal principal amount of First Collateral Trust Bonds, 7 1/2% Series B Due 2008, which have been registered with the Securities and Exchange Commission.
28 /PRNewswire/ -- Texas Utilities Electric Company (NYSE: TXU) (TU Electric) today announced plans to redeem all of the outstanding $100 million principal amount of its First Mortgage and Collateral Trust Bonds, 9% Series due April 1, 2022.
A-' first collateral trust bonds, 'BBB+' sinking fund debentures, 'BBB' preferred stock, 'F-1' commercial paper
570 million of fixed-rate Collateral Trust Bonds rated A+/A+/A1 by Fitch Ratings, Standard & Poor's and Moody's Investors Service, respectively.
The filing registers $500 million of new secured first collateral trust bonds or unsecured senior debt securities.
DCR's ratings for PPW are as follows: first mortgage and collateral trust bonds and medium-term notes 'A' (Single-A); quarterly income preferred securities, quarterly income debt securities, trust preferred securities and preferred stock 'A-' (Single-A-Minus); and commercial paper 'D-1' (D-One).
The re-rating of the QUICS does not adversely affect ratings on CFC's other obligations, including its collateral trust bonds, medium-term notes and commercial paper.
Interstate Power and Light Company will have the flexibility to issue and sell from time to time preferred stock, senior unsecured debt securities and collateral trust bonds.
The second mortgage bonds are rated the same as the first mortgage bonds and the first collateral trust bonds due to the substantial value of the collateral available to creditors secured by first and second mortgage bonds.
The first collateral trust bonds were issued in two series: $300 million with a 4.