utility bond
- noun
- /juːˈtɪləti bɑnd/
- Specialized
:
bono de servicios públicos
- The city issued a new utility bond for infrastructure improvements.
Examples
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Investors consider utility bonds relatively safe because they are backed by essential public services.
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The construction of the new subway line was financed largely through a utility bond.
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The city issued a utility bond to pay for improvements to the water treatment facility.
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Investors are buying utility bonds to support local projects.
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The city issued a new utility bond to fund the upgrades to the aging water supply system.
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Investors are keen to buy the utility bond because it helps finance essential services like electricity and public transportation.
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After the storm, local officials discussed issuing a utility bond to repair damaged power lines and restore services quickly.
Synonyms
564
4.4
A certificate promising to repay borrowed money with interest
10
4.4
A loan a city or state sells to pay for public projects, often free from federal taxes
2
5.3
A way to raise money for a public project paid back from the money the project earns
A loan to build public services like water or electricity paid back from the money those services earn
How Safe
- Specialized
14
2.7
- Specialized
- Specialized
4
3.7
- Specialized
33
7.0
Surface Forms
Morphology
This is a direct noun–noun composition: 'utility' (public service) + 'bond' (debt instrument) yields a bond related to utilities. The meaning is literally and predictably built from the constituents and mirrors analogous constructions in other languages, so a B1 learner who knows both words can infer the meaning.
Etymology
The term utility bond comes from a simple picture: a town needs money to build water pipes, power lines or a new subway, so it sells a bond — a 'promise to pay' — to investors. Because the loan is for an essential utility service, investors expect steady payments, and that's why a utility bond means a bond used to finance public services.