What is the meaning of collateral trust bonds?

collateral trust bonds is a type of corporate bond that employs a trustee to hold collateral, other than equipment or real estate, for the bond holders. For example, a parent corporation may borrow funds through a bond issue and pledge the stock in one of its subsidiaries as collateral for the bondholders.

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APABarry Goldsmith. (2010). Collateral trust bonds. Retrieved September 22, 2026, from http://smartdefine.org/collateral_trust_bonds/definitions/1150155
ChicagoBarry Goldsmith. 2010. "Collateral trust bonds" http://smartdefine.org/collateral_trust_bonds/definitions/1150155 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, Collateral trust bonds, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/collateral_trust_bonds/definitions/1150155>.
MLABarry Goldsmith. "Collateral trust bonds" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/collateral_trust_bonds/definitions/1150155>