Mortgage bond
Mortgage bond is a bond for which a corporation pledges certain assets as security. All such bonds are written subject to an indenture.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Mortgage bond. A bond for which a corporation pledges certain assets as security. All such bonds are written subject to an indenture.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Mortgage bond. A bond backed by fixed assets. First mortgage bonds are senior in priority to claims of second mortgage bonds.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
