Term:
Bull and bear bond
Definition:
Fixed-interest bond whose value at maturity is dependent on the performance of a stock market index. The issue is divided into two parts: a bull bond and a bear bond.
The bull bond’s redemption value rises if the market index increases and declines if the index decreases. Conversely, the bear bond has a higher redemption value if the stock market weakens and a lower value if stock prices rise.
Domain:
Finance
Source:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments