Super sinker bond(redirected from Super Sinkers)
Super sinker bond
Usually a home financing bond, but also any other bond that has long-term coupons but short maturity; the mortgages may be prepaid, and the holders may receive the long-term yield after a short period of time.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Super Sinker Bond
A short-term bond with a coupon equivalent to that of a long-term bond. That is, the bondholder receives a long-term yield in a short period of time. Most super sinker bonds are collateralized by mortgages and are used to reduce prepayment risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved