Z-Bond

See Z Tranche.

A Z-Bond lives in the same sad sack milieu, existing at the very bottom of the financial ladder in priority to be paid off...only the Z-Bonds live inside of a CMO (Collateralized Mortgage Obligation).

Remember that crash in '08/09? Yeah. That one. Very few Z-Bonds actually paid off as the world teetered on The Edge. And not from U2.