Collateral trust bonds

Collateral trust bonds

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.

Collateral Trust Bond

A bond usually issued by a holding company that is collateralized with securities rather than physical assets. Holding companies are the primary issuers of these bonds because their primary operation is to hold stock in other companies; their main assets are these securities.
References in periodicals archive ?
The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRC), a non-profit finance cooperative created and owned by America's electric cooperative network, has completed its underwritten public offering of USD800m in collateral trust bonds.
23 February 2011 - Deutsche Bank Securities, JPMorgan Securities and RBS Securities were among the joint book-runners for the USD300m (EUR219m) sale of collateral trust bonds by National Rural Utilities Cooperative Finance Corp (NYSE:NRU), or CFC, the latter said on Tuesday.
15 February 2011 - Deutsche Bank (ETR:DBK), JP Morgan (NYSE:JPM) and Royal Bank of Scotland (LON:RBS) served as active book-runners for National Rural Utilities Cooperative Finance Corp's issue of USD300m (EUR222m) collateral trust bonds, IFR, a Thomson Reuters service, reported.