collateral trust bond
Collateral Trust Bond
A bond usually issued by a holding company that is collateralized with securities rather than physical assets. Holding companies are the primary issuers of these bonds because their primary operation is to hold stock in other companies; their main assets are these securities.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
collateral trust bond
A long-term debt obligation with a claim against securities rather than against physical assets. This type of bond is issued primarily by holding companies that own mainly securities of subsidiaries.
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.