Balloon maturity

(redirected from Balloon Maturities)

Balloon maturity

Any large principal payment due at maturity for a bond or loan with or without a sinking fund requirement.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Balloon Maturity

A provision in some bond agreements in which a large number of bonds comes due at the same time, usually at maturity. Balloon maturity occurs only in bonds without a sinking fund provision; rather than retiring part of the principal at different times, balloon maturity returns most or all of the principal on a single date. Issuers of bonds with balloon maturities can have difficulty in repayment if they have not set aside a sufficient amount of money.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Mentioned in ?
References in periodicals archive ?
The remaining loans consist of balloon maturities (100%) with final maturity dates in 2017 (1.5%) and 2020 (98.5%).
Fitch Upgrades COMM 2010-C1
Trepp expects the delinquency rate to increase as 2007-vintage loans--originated under the weakest underwriting standards--start reaching their five-year balloon maturities. This will add to the stress that is being put on the delinquency rate by the slowdown in CMBS issuance.
CMBS delinquency rates continue to drop--for now

Financial browser ?
Full browser ?