Glossary of Municipal Securities Terms

SUPER SINKER

A colloquial term for a term maturity, usually from a single family mortgage revenue issue with several term maturities, that will be the first bonds to be called from a sinking fund into which all proceeds from prepayments of mortgages financed by the issue are deposited. The maturity’s priority status under the call provisions means that it is likely to be redeemed in its entirety well before the stated maturity date. Therefore, the super sinker maturity may be considered attractive to investors because it offers long-term interest rates on what is effectively a short-term security. See: REDEMPTION PROVISIONS. Compare: PLANNED AMORTIZATION CLASS SECURITIES; SINKER.

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