COLLATERAL TRUST BONDS
collateral trust bonds: translation
A type of corporate bond that employs a trustee to hold collateral, other than equipment or real estate, for the bond holders. For example, a parent corporation may borrow funds through a bond issue and pledge the stock in one of its subsidiaries as collateral for the bondholders. American Banker Glossary
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A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond. Bloomberg Financial Dictionary