Bear Bond

Bear Bond

A bond that is likely to increase in price when stocks or the economy at large is performing poorly (that is, when interest rates are rising). Interest-only bonds and mortgage-backed securities that pay only interest are common examples of bear bonds because, in a bear market, people tend to pay only interest on large debts. See also: Flight to Safety.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Mentioned in
Copyright © 2003-2025 Farlex, Inc Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.