Sinker

Sinker
A bond with payments that are provided by the issuer's sinking fund. A sinker's bond payments are paid from a pool of money that the issuer has set aside to repurchase a portion of the bonds it has issued each year. By repurchasing some bonds before they mature, the company avoids the large expense of repaying the bonds' entire principal at once, when the bonds reach their original maturity date.

A sinker theoretically has a lower default risk at maturity, since the issuer intends to retire early a portion of the bonds it has issued. However, it also has reinvestment risks similar to those of a callable bond because, if interest rates decline, the investor could have the bond repurchased by the issuer at either the sinking fund price or the current market price.


Investment dictionary. . 2012.

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  • Sinker — Sink er, n. One who, or that which, sinks. Specifically: (a) A weight on something, as on a fish line, to sink it. (b) In knitting machines, one of the thin plates, blades, or other devices, that depress the loops upon or between the needles.… …   The Collaborative International Dictionary of English

  • Sinker — may refer to: * Sinker (baseball), a type of baseball pitch * Sinker (fishing), a weight used in fishing * Doughnut, slang usually used to suggest dunking (or sinking ) it in coffee * Sinker ( Zoids ), a fictional mecha from Zoids …   Wikipedia

  • Sinker — Sinker, 1) überhaupt so v.w. Senker; 2) diejenigen jungen Tulipanenzwiebeln, welche unter der Hauptzwiebel in die Tiefe wachsen, da hingegen die neben derselben wachsenden Setzlinge heißen …   Pierer's Universal-Lexikon

  • sinker — ► NOUN ▪ a weight used to sink a fishing line or sounding line …   English terms dictionary

  • sinker — [siŋkər] n. 1. a person or thing that sinks 2. a lead weight used in fishing ☆ 3. Informal a doughnut ☆ 4. Baseball a pitched ball that drops downward sharply as it reaches home plate: sometimes called sinkerball [sing′kərbôl΄] …   English World dictionary

  • sinker — [[t]sɪ̱ŋkə(r)[/t]] PHRASE: PHR after v (emphasis) You can use hook, line, and sinker to emphasize that someone is tricked or forced into a situation completely. We fell for it hook, line, and sinker... I was caught hook, line and sinker …   English dictionary

  • sinker — UK [ˈsɪŋkə(r)] / US [ˈsɪŋkər] noun [countable] Word forms sinker : singular sinker plural sinkers 1) a heavy object used in fishing to carry the line or the net to the bottom of the water See: hook I 2) in baseball, a ball that drops down as it… …   English dictionary

  • sinker — See: HOOK, LINE AND SINKER …   Dictionary of American idioms

  • sinker — See: HOOK, LINE AND SINKER …   Dictionary of American idioms

  • sinker — In naval mine warfare, a heavy weight to which a buoyant mine is moored. The sinker generally houses the mooring rope drum and depth setting mechanism and for mines laid by ships, it also serves as a launching trolley …   Military dictionary

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