Xtrakter

  • About Us
  • Solutions
  • Market Info
  • Events
  • News
  • Clients
  • > Log-in
Xtrakter
  • Data services
  • Free data services
  • Bond market FAQ
    • What is a bond?
    • What is the bond market?
    • What types of bond are there?
    • Who issues bonds?
    • Who are bond market participants?
    • How does bond market volatility occur?
    • What is the nominal amount?
    • What is the issue price?
    • What is the maturity date?
    • What is the term, maturity or tenure?
    • What is a coupon?
    • What is a coupon date?
    • What does current yield mean?
    • What does redemption yield mean?
    • What does the market price / dirty price / clean price mean?
    • What is a yield?
    • What is a yield curve?
    • What are indentures?
    • What is optionality?
    • What is a callable bond?
    • What is a putable bond?
    • What does a sinking fund provision mean?
  • Policy initiatives
  • Compliance
  • Click here for the main education page
  • Click here for our retail investors service
    Home > Market Info > Bond market FAQ > What does a sinking fund provision mean?

    What does a sinking fund provision mean?

    A sinking fund provision of a corporate bond indenture requires a proportion of the issue to be retired periodically. The entire bond issue can be liquidated by the maturity date. If that is not the case then the remainder is called balloon maturity.

     
     

    Xtrakter © 2008

    Xtrakter Ltd, 33 Cannon Street, London, EC4M 5SB Tel: +44 (0) 20 7538 5656 Fax: +44 (0) 20 7538 4902