sinking fund

sinking fund
Cash set aside under restricted conditions as required by the terms of certain types of debt.
See sinking fund bonds ( sinkers). American Banker Glossary
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A fund to which money is added on a regular basis that is used to ensure investor confidence that promised payments will be made and that is used to redeem ( redemption) debt securities or preferred stock issues. Bloomberg Financial Dictionary
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Where a bond is redeemed in instalments over its life, by means of bonds being repurchased prior to final maturity in the market at the current market price. Dresdner Kleinwort Wasserstein financial glossary
See also purchase fund and bullet form. Dresdner Kleinwort Wasserstein financial glossary
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The repayment of debt by an issuer at stated regular intervals through purchases in the open market or drawings by lot. Exchange Handbook Glossary

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sinking fund sinking fund fund1

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   Mandatory prepayments by a borrower to redeem a certain amount of an issue, thus reducing the principal amount due at maturity. The prepayments are made regardless of price movements in the secondary bond market, through payments to a special account.

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sinking fund UK US noun [C]
FINANCE money that a company pays into an account so that it can pay investors, lenders, etc. the money it owes them: »

By paying off a portion of its debt each year with the sinking fund, the company will face a much smaller final bill.

UK PROPERTY an account into which all owners of apartments in a building make regular payments for future repairs to the building: »

Make sure that the block in which you are buying a flat has a healthy sinking fund.


Financial and business terms. 2012.

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Look at other dictionaries:

  • sinking fund — see fund 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. sinking fund …   Law dictionary

  • Sinking fund — Sinking Sink ing, a. & n. from {Sink}. [1913 Webster] {Sinking fund}. See under {Fund}. {Sinking head} (Founding), a riser from which the mold is fed as the casting shrinks. See {Riser}, n., 4. {Sinking pump}, a pump which can be lowered in a… …   The Collaborative International Dictionary of English

  • Sinking fund — Fund Fund, n. [OF. font, fond, nom. fonz, bottom, ground, F. fond bottom, foundation, fonds fund, fr. L. fundus bottom, ground, foundation, piece of land. See {Found} to establish.] 1. An aggregation or deposit of resources from which supplies… …   The Collaborative International Dictionary of English

  • sinking fund — n. a fund made up of sums of money set aside at intervals, usually invested at interest, in order to meet a specified future obligation, as the retirement of bonds at maturity …   English World dictionary

  • Sinking-fund — (engl., sinkender Fond, Tilgungsfond, Tilgungsstamm), in England das durch die jährliche Zinsersparung anwachsende Vermögen zur Verminderung der Staatsschuld, s.u. Schuldentilgung …   Pierer's Universal-Lexikon

  • Sinking fund — (engl., spr. ßingking fönnd), soviel wie Tilgungsfonds (s. d.) …   Meyers Großes Konversations-Lexikon

  • Sinking fund — (engl., spr. fönnd), s.v.w. Amortisationsfonds (s. Amortisation) …   Kleines Konversations-Lexikon

  • Sinking fund — Sinking fund, engl., Tilgungsfond …   Herders Conversations-Lexikon

  • sinking fund — sinking .fund n technical money saved regularly by a business to pay for something in the future …   Dictionary of contemporary English

  • sinking fund — sinking ,fund noun count money you save in order to pay for something in the future …   Usage of the words and phrases in modern English

  • Sinking fund — Historical ContextA Sinking Fund was a device used in Great Britain in the 18th century to reduce national debt. While used by Robert Walpole in 1716 and effectively in the 1720s and early 1730s, it originated in the commercial tax syndicates of… …   Wikipedia

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