yield burning

Main Entry:  yield burning
Part of Speech:  n
Definition:  an illegal method of financing municipal bonds when an underwriter overcharges state and local governments for Treasury securities that they use in "advanced refunding" of old, high-yielding municipal bond issues with new, low-yielding ones
Example:  In yield burning, since bond prices and yields move in opposite directions, when the bonds are marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues.
Usage:  finance
Dictionary.com's 21st Century Lexicon
Copyright © 2003-2014 Dictionary.com, LLC
Cite This Source
Explore Dictionary.com
Previous Definition: yield
Next Definition: yield gap
Words Near: yield burning
More from Thesaurus.com
Synonyms and Antonyms for yield burning
More from Reference.com
Search for articles containing yield burning
More from Dictionary.com Translator
Dictionary.com Word FAQs

Dictionary.com presents 366 FAQs, incorporating some of the frequently asked questions from the past with newer queries.

Copyright © 2014 Dictionary.com, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature