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Cushion bonds

• High-coupon bonds that sell at only a moderate premium because they are callable at a price below that at which a comparable noncallable bond would sell. Cushion bonds offer considerable downside protection in a falling market.

• High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable non-callable bond would sell. Cushion bonds offer considerable downside protection in a falling market.

 
 

Follow this link for all the terms related to bondbonds.

 
 Embedded terms in definition
 Bond
Callable bond
Callable
Coupon bond
Market
Offer
Premium
Sell
 
 Related Terms
 

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