Bear Bond

Bear Bond

A bond that is likely to increase in price when stocks or the economy at large is performing poorly (that is, when interest rates are rising). Interest-only bonds and mortgage-backed securities that pay only interest are common examples of bear bonds because, in a bear market, people tend to pay only interest on large debts. See also: Flight to Safety.
References in periodicals archive ?
"Oprah shouted, 'Their time has come.' The bear bond market's time has come as well."
Gross cautions that if 2.60% is broken on the upside -- in other words if yields go beyond 2.60% -- then "a secular bear bond market has begun."
The interest rate on both the bull bonds and the bear bonds converts to a fixed rate following a prespecified conversion date, typically the first call date.
After the conversion date, both the bull bonds and bear bonds will pay |X~.