Series 82: 3.3.3.2. Equipment Trust Bonds

Taken from our Series 82 Online Guide

3.3.3.2. Equipment Trust Bonds

Equipment trust certificates (ETCs) are commonly issued by transportation companies. When an airline buys a fleet of new planes, it may decide to use an ETC to finance the purchase. ETCs are bonds in which a trustee sells the issue to investors and delivers the proceeds to the borrower,

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