cushion bond

cushion bond　保收债券　

a type of callable bond that sells at a premium because it carries a coupon rate that is above market interest rates.A cushion bond’s call feature means that it will be priced on a yield-to-call basis（meaning it can be redeemed prior to maturity），rather than on a yield-to-maturity basis；this relatively shortened maturity decreases its sensitivity to changes in interest rates.A cushion bond is so called because its resilience to interest rate fluctuations provides a cushion or a degree of protection against rate changes，especially when they are rising.