Sinking fund provision

Sinking fund provision,

Definition of Sinking fund provision:

  1. A requirement for certain bond issuers to buy back a portion of its debt at regular intervals. The bonds can be bought by the issuer on the secondary market or directly from bond holders. A sinking fund provision will be disclosed in the indenture. See Refunding Risk; Callable Bond.

Meaning of Sinking fund provision & Sinking fund provision Definition