Self-Liquidating Bond(redirected from self-liquidating)
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Related to self-liquidating: Self-Liquidating Loans
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.