income bond

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Related to income bond: convertible bond, junk bond

Income bond

A bond whose payment of interest is contingent on sufficient earnings. These bonds are commonly used during the reorganization of a failed or failing business.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Income Bond

A bond in which the issuer is only responsible for making coupon payments when it has sufficient income to do so. Income bonds are most common in reorganization plans in which the issuer is attempting to maintain operations in bankruptcy. An income bond is useful for the issuer because it provides capital quickly. However, it can be disadvantageous for the bondholder because there is little or no guarantee of repayment. As a result, income bonds are relatively rare securities.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

income bond

A long-term debt security in which the issuer is required to pay interest only when interest is earned. This rare security, issued principally as part of a corporate reorganization, offers an investor a relatively weak promise of payment. Some issues require that unpaid interest be accumulated and made up in periods that earnings permit. Also called adjustment bond.
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.
References in periodicals archive ?
Guaranteed income bonds are pitched at 1.45 per cent gross on a one-year term and 1.90 per cent gross for three years.
The HSBC Global Investment Funds Singapore Dollar Income Bond, an Asia-focused fixed income fund, will invest in sectors and countries across the region.
The Regular Income Bond is a six-year investment that is linked to the FTSE.
The Wizard prices both accrual bonds (Series I, EE, E and savings notes) and current income bonds (Series HH and H).
HSBC Holdings (LSE: HSBA) has said that it has launched a Singapore-dollar income bond for local retail investors.
The group is also reducing the returns paid on its variable rate savings products, such as its cash mini ISA, easy access savings account and income bonds, by up to 0.25%.
For these people the Guaranteed Income Bond is suddenly the safest port in a storm.
The only investment that gives income with a cast iron capital guarantee is of course National Savings but again rates are pretty unattractive with their Income Bond paying 6 per cent.
NATIONAL Savings & Investments have slashed the maximum amount people can stash in their Guaranteed Growth and Income Bonds.
RBC Global Asset Management Inc, a part of Royal Bank of Canada (RBC) (TSX: RY) (NYSE: RY), has said that the name of RBC Monthly Income High Yield Bond Fund will change to RBC Strategic Income Bond Fund, effective January 25, 2016,.
ACONSIDER a Secure Income Bond. Some offer better rates than deposit accounts with a guaranteed income and the security of your capital if you run the bond to maturity, typically three to five years.
One of the best ways of doing this is by using part of your capital to invest in a Managed Income Bond, where the money is invested in a wide range of areas including equities, corporate bonds, gilts, fixed interest securities and cash.