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conduit financing

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Financial Dictionary

Conduit Financing

A financing arrangement involving a government or other qualified agency using its name in an issuance of fixed income securities for a non-profit organization's large capital project.

Investopedia Commentary

The government or other qualified agency is not responsible for paying the required cash flows to investors - all cash flows come directly from the project.

Related Links

Bond Basics Tutorial

See also: Bond, Municipal Bond, Securities and Exchange Commission - SEC

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