Residual Interest Bond (RIB)
Definition
A bond created by the split of income from a municipal bond into two securities: a residual inverse floating-rate bond and a primary direct floating-rate bond. RIBs are linked to the residual inverse floating-rate because income from the municipal bond is used to fund the direct floater and the left-over income is put into the inverse floater which makes up RIBs.
Nearby Terms
- Similar companies