Definition of Self-Liquidating Bond
What is a Self-Liquidating Bond
A self-liquidating bond is a debt obligation where the principal and interest are paid for from the revenue generated by an asset or municipally owned enterprise, which is often a utility company. The revenue of the enterprise must be sufficient to cover the debt with a reasonable margin of protection for the bonds to be regarded as entirely self-liquidating.
Glossary of Terms and Phrases
A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.
We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.