lease fund

(redirected from Lease Funds)

Lease Fund

A mutual fund that invests predominantly or exclusively on the receivables from lease agreements. Because there is little or no secondary market for leases, the fund must directly purchase the leases in the fund. A lease fund operates much like a bond fund, but with shorter maturities for the underlying assets.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

lease fund

An investment company that invests the shareholders' money in lease obligations. A lease fund is very similar to a bond fund except that the maturities of its investments are shorter. Because leases do not have an active secondary market, the fund manager must secure outside agreements to buy the leases in case the shareholders redeem their shares.
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.
References in periodicals archive ?
BM Lease funds, he said, were directed to the sectors of industry, telecommunications, and real estate development.
The Air Force Audit Agency (AFAA) conducted an audit and found that several USAF bases mistakenly had deposited lease funds into their K1/K2 accounts rather than depositing funds in the U.S.
Non-correlated assets, including real estate investment trusts, equipment lease funds and energy funds, are worth a look for the steady returns they provide.