Self-Liquidating Bond

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Related to self-liquidating: Self-Liquidating Loans

Self-Liquidating Bond

A bond used to finance the purchase of assets intended to be sold within a short period of time. For example, a company may issue a self-liquidating bond to pay for its inventory, which it intends to quickly sell. It is called a self-liquidating bond because the proceeds from the sale of the assets provide the capital with which the issuer may repay the bond.
References in periodicals archive ?
Trade finance is short term in nature and it is self-liquidating.
An asset-backed security is a fixed-income or other security that is collateralized by a self-liquidating financial asset.
Netz Realty plans returns of 30-35% on it's projects because the projects are self-liquidating after the approvals and are set up in places with significant amount of demand for flats.
Yet the projects financed by higher education bonds resemble revenue bonds in that they are self-liquidating - the debt is repaid with income from users, donors, grants or other revenue sources.
For the latter, Rosenwald's recurring insistence on matching grants and self-liquidating funds (used for specific ends and with specific deadlines) rather than self-perpetuating endowments help explain why contemporaries may be forgiven for not knowing his name.
The question of introducing a generalised self-liquidating mechanism will also be at the heart of discussions despite the extreme reluctance of the Council (see Europolitics 3453).
Can the Federal Reserve System become the "lender of last resort" so that the "full faith and credit" of "We, the People" can pump newly issued money into the banking system on a self-liquidating and asset-backed basis?
Cost, including related hardware, is self-liquidating in about nine months.
The mass merchants are starved for help, so we've developed self-liquidating displayers so the product sells itself," related Barry Cohen, president of Pinnacle Art & Frame, makers of Pinnacle brand for the mass market and Hermitage Fine Art for specialty channels.
Weiss argues that governed interdependence differs from embedded autonomy because it is not self-liquidating.