collateral trust bond

finance

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June 24, 2026

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A collateral trust bond is a type of bond that is secured by negotiable securities deposited with a trustee. These securities, often stocks and bonds owned by the issuing corporation, serve as collateral to guarantee the bondholder's investment. This differs from a mortgage bond, which is secured by specific real property. Collateral trust bonds are a way for corporations to raise funds, providing investors with a level of security through the pledged assets.12

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security
Bonds
Another type is a collateral trust bond, in which the security consists of intangible property, usually stocks and bonds owned by the corporation. Railroads and other transportation companies sometimes finance the purchase of rolling stock with equipment obligations, in which the security is the rolling stock itself.
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Another type is a collateral trust bond, in which the security consists of intangible property, usually stocks and bonds owned by the corporation. Railroads and other transportation companies sometimes finance the purchase of rolling stock with equipment obligations, in which the security is the rolling stock itself.
Read More