FT MarketWatch

Underlying debt

For Municipal bond, the Debt of a government entity within the Jurisdiction of a larger government entity which has partial Credit responsibility. The larger government entity views the Debt of the smaller entity as Underlying debt. Since the larger government entity will generally be more creditworthy than the smaller entity, this sharing of Credit responsibilities generally acts as a Credit enhancement for the issuing authority.

Related Terms: 10 Credit, Credit enhancement, Debt, Inc., Jurisdiction, Muni, Municipal bond, Rally, Ring, Underlying debt
Other Related Pages: Category: Bonds Starting With: U
Semi Related Terms: 531 CLICK HERE TO VIEW
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