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Glossary > Z > "Z bond" Definition

Z bond

Also known as an accrual bond or accretion bond; a bond on which interest accrues interest but is not paid currently to the investor but rather is accrued, with accrual added to the principal balance of the Z and becoming payable upon satisfaction of all prior bond classes.

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Z bond \ Also known as an accrual bond or accretion bond; a bond on which interest accrues interest but is not paid currently to the investor but rather is accrued, with accrual added to the principal balance of the Z and becoming payable upon satisfaction of all prior bond classes.

Z bond / also known as an accrual bond or accretion bond; a bond on which interest accrues interest but is not paid currently to the investor but rather is accrued, with accrual added to the principal balance of the z and becoming payable upon satisfaction of all prior bond classes.