Term:
Bunny bond
Definition:
A bond that permits investors to reinvest the interest income into bonds with the same terms and conditions as the host bond. Note that bunny bond is a UK term only. OSCARs, which are used in the French market, have a maturity of 10 years and reinvestment is only possible between the first and sixth year.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt