# Security fund bond (sinkable bond)

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- Post ID: 589166
- Modified: 2023-07-25T21:13:29+00:00
- Language: en

## Definition

The issuer of a bond issue sets up a sinking fund that is usually fed by current income from business activities; this secures the servicing of the bond (a special type of bond that a company will issue that is backed by a sinking fund, which sets aside money on a consistent basis in order to ensure investors that principal and interest payments will be paid out as promised). As a rule, such securities also carry a lower interest rate because of the lower risk for the investor. - See bond, secured. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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