Financial and business terms

YIELD BURNING

yield burning: translation

A municipal bond financing method. underwriters in advance refundings add large markups on US Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonds after issuance of the new bonds. 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.Bloomberg Financial Dictionary

  1. yield burning—Yield Burning translationThe illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice referred to ...Investment dictionary
  2. yield burning—гос. фин. амер. прожигание доходностиu ситуация когда подписчики чрезмерно вздувают цены на новые муниципальные облигации выпускаемые для рефинансирования старых займов т...Англо-русский экономический словарь