Self-Liquidating Bond(redirected from Self Liquidating Bonds)
A bond used to finance the purchase of assets intended to be sold within a short period of time. For example, a company may issue a self-liquidating bond to pay for its inventory, which it intends to quickly sell. It is called a self-liquidating bond because the proceeds from the sale of the assets provide the capital with which the issuer may repay the bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved