special bond account

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Special bond account

A special broker margin account used only for transactions in US government bonds, municipals, and eligible listed and unlisted non-convertible corporate bonds.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Special Bond Account

A margin account that exclusively uses borrowed funds to buy bonds. That is, one is not permitted to buy stocks or derivatives on a special bond account. Because bonds both carry fewer risks and have less volatile prices than other securities, special bond accounts have lower minimum maintenance requirements than other margin accounts.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

special bond account

A brokerage account in which a customer is limited to transactions in bonds. Special low margin requirements apply to a special bond account because bond prices are generally less volatile than those of most other securities.
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.
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