Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- STATE AND LOCAL GOVERNMENT SERIES (SLGS OR SLUGS)
Definition: Special U.S. Treasury bonds with low yields and high prices that the Treasury issues for municipalities to use in advanced refundings of their municipal securities. Application: The idea is to provide securities that will allow the municipalities to benefit from a drop in market interest rates, without giving them an excuse to engage in "tax arbitrage" by issuing tax-exempt debt, investing the proceeds in taxable debt, and keeping the spread without paying tax on it.Back