bull bond

Definition

A bond that is prone to improve its value when interest rates fall, typically during a bull bond market. The value of these bonds increase more than other bonds that perform well in a bull market. The loans are refinanced with lower rates, which speed up repayment to investors. Principal only (PO) strip mortgage-backed securities are an example of bull bonds.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
bull and bear bonds bull call spread