Definition of Serial Bond

Financial Terms Beginning with S

What is a Serial Bond

A serial bond is a bond of the same issue that has different maturities over several years. Segments of the outstanding bonds mature at regular intervals until all the bond segments have matured.

Each segment in the bond is issued concurrently with the repayment terms listed in the offering prospectus. This structure allows the issuer to retire the issue in small amounts over a long period of time.

Serial bonds are used to finance projects, commonly municipal-based, that provide a predictable and consistent income stream for bond repayment over time. Serial bonds do not utilize sinking funds as they rely on the revenue generated from the project that the bond is issued to fund.

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.

Related Investment Terms

Corporate Bond

Debenture

Municipal Bond

View of NYC between the Brooklyn Bridge and Manhattan Bridge
New York, New York