A bond with no coupon and no principal. That is, a Clinton bond is a bond that is literally worth nothing. The term originally referred to low-bond interest rates when Bill Clinton was president of the United States, which caused bond traders to lose money. The term is more of a buzzword; that is, it may be used to complain about fiscal policy than refer to real bonds. A Clinton bond is also called a Quayle bond, after former U.S. Vice President Dan Quayle.
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