Series 50: Sinking Fund

Taken from our Series 50 Online Guide

Sinking Fund

A bond with a sinking fund provision requires the issuer to set money aside in an escrow account to ensure the repayment of principal. The maintenance of such a fund reduces credit risk and assures investors of repayment. Greater investor confidence results in greater marketability.

Since you're reading about Series 50: Sinking Fund, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 50
Please Enable Javascript
to view this content!