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Keygent LLC - Independent California Municipal Advisor

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Keygent LLC - Independent California Municipal Advisor
  • About/
  • Services/
    • Municipal Advisory
    • Notes Programs
    • Continuing Disclosure & CDIAC Filings
  • News/
  • Events/
  • Resources/
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November 09, 2017

What Is a Capital Appreciation Bond?

November 09, 2017/ Chet Wang
What Is a Capital Appreciation Bond?

A common misconception of CABs is that it’s a balloon payment whereas current interest bonds are not. This is not always true as a current interest bond could also have one large principal payment due out in the future. Similar to current interest bonds, CAB maturities could be structured such that principal is amortized more regularly.

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November 09, 2017/ Chet Wang/
capital appreciation bond, Keygent

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