bailout bond(redirected from Bailout Bonds)
A bond issued by the Resolution Funding Corporation (Refcorp) to save the failing savings and loan associations in the late 1980s and early 1990s.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A bond issued by the Resolution Funding Corporation in order to raise funds for the Resolution Trust Corporation. That is, bailout bonds were issued in order to pay for the closure, reorganization, and the financing of savings and loans that went bankrupt during the S&L crisis. The principal on bailout bonds were guaranteed by zero-coupon Treasury bonds, meaning that they were backed by the full faith and credit of the United States government. See also: Financial Institutions Reform, Recovery and Enforcement Act of 1989.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
U.S. government-guaranteed debt issued by the Resolution Funding Corporation to pay for the rescue of bankrupt savings and loan associations.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.