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Finance Glossary

Just call us Bond. Amortized bond.

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Equipment Trust Certificates


Basically an asset backed bond that is backed by equipment or machinery that a company owns. When you buy this sort of bond, the idea is that, in case the company can't pay back the bond, the equipment or machinery they own can be sold to pay for it—that way, you don't lose money.



A company has 40 tractors. On eBay they think they'd fetch a hundred grand. The company raises fifty grand against them by selling bonds offering 8% a year.