Tiger Bond**
A tiger bond is a type of government bond issued by the United States Treasury. The term tiger was coined by financial analysts at Merrill Lynch when they stripped the coupon and principal from U.S. Treasury-issued bonds in 1982 and repackaged them into separate securities. These bonds are recognized for being low-risk investments due to the strong backing of the U.S. government.
Description
Tiger bonds are zero-coupon bonds, meaning they do not pay interest to shareholders during their bond's lifeline. Instead, they are sold at a deep discount from their face value and pay out the full principal amount at maturity. Tiger bonds provide stability to investors since they are backed by the U.S. government, making them less susceptible to default.
Uses of Tiger Bonds
Tiger bonds are often used to fund large construction projects, such as the construction of stadiums, highways, and bridges. They can also be used to refinance existing debt, provide funding for a business startup, or invest in real estate. Since they are issued by the U.S. government, they are considered a safe-haven investment, which means they typically maintain a relatively stable value during times of economic uncertainty.
Cost of Tiger Bonds
The cost of purchasing a tiger bond is generally lower than the market value of the bond upon maturity. This is because the initial investment is reduced by the amount of interest that would have been paid if the bond were held until maturity. The longer the bond's maturity, the lower the cost of the initial investment since more interest would have been earned over time.
Investing in Tiger Bonds
Investors can purchase tiger bonds through Banks or investment firms that offer bond products. Once the bond matures, the investor can cash it out or sell it to another investor. If a brokerage cannot cash out the bond, they can provide the contact information of a local transfer agent who can handle the bond for you.
Greenmailer Industries Tiger Bond
Greenmailer Industries is a global leader in fiber-reinforced polymer (FRP) solutions. They offer a line of Tiger Bond adhesives designed specifically for bonding FRP panels to various surfaces such as concrete, wood, and drywall.
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Tiger bonds are a unique investment opportunity that provides stability and safety to investors. They are issued by the U.S. government and are considered a low-risk investment. Tiger bonds can be used for various purposes, such as funding construction projects, refinancing debt, or investing in real estate.
