special bond account

Special bond account

A special broker margin account used only for transactions in US government bonds, municipals, and eligible listed and unlisted non-convertible corporate bonds.

Special Bond Account

A margin account that exclusively uses borrowed funds to buy bonds. That is, one is not permitted to buy stocks or derivatives on a special bond account. Because bonds both carry fewer risks and have less volatile prices than other securities, special bond accounts have lower minimum maintenance requirements than other margin accounts.

special bond account

A brokerage account in which a customer is limited to transactions in bonds. Special low margin requirements apply to a special bond account because bond prices are generally less volatile than those of most other securities.
References in periodicals archive ?
The callers ask permission to transfer the person's money into a special bond account for safekeeping until after the new year when the bank completes Y2K tests and repairs.
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