super sinker

Super Sinker Bond

A short-term bond with a coupon equivalent to that of a long-term bond. That is, the bondholder receives a long-term yield in a short period of time. Most super sinker bonds are collateralized by mortgages and are used to reduce prepayment risk.

super sinker

A housing revenue bond issue in which mortgage prepayments are used to retire a specified maturity. Although this particular maturity is far in the future, the bond is likely to be paid off in a relatively short period. Even though an investor in the specified maturity bond is unsure when the security may be retired, the annual return is likely to be relatively high for a short- to intermediate-term holding period.
Mentioned in ?
References in periodicals archive ?
5,235,000 super sinker term bonds due June 1, 2025 at 'BBB+'; Outlook Stable;
10,890,000 super sinker term bonds due June 1, 2035 at 'BBB+'; Outlook Stable;
6 million and consisted of tax-exempt serial bonds due June 1, 2006-2016 and tax-exempt super sinker bonds with maturities of June 1, 2025, 2035, and 2043.
Indenture provisions for such a circumstance provide adequate protection by trapping cash and limiting the likelihood that any non-mandatory super sinker payments will be made during the next two or three years.
The term bonds are subject to super sinker redemption payments beginning in 2002.