Business and Personal Finance Dictionary

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• SUPER SINKER
  
  A term maturity in a housing mortgage bond issue. These will be the first bonds to be called, on any interest payment date, from the proceeds of prepaid mortgages. The average mortgage is prepaid though refinancing or sale in 6.8 years. While it is likely, it cannot be guaranteed that a super sinker will be called; as a result they are priced as a long-term bond but are most likely to be a short-term maturity. It is a way to get a higher yield for a short term bond.
  
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