FT MarketWatch

Trust-preferred security

A security possessing characteristics of both equity and Debt issues. A company creates trust-preferred securities by creating a Trust and issuing Debt to the new entity. Because the Interest paid to the Trust is Tax-deductible, the company may realize significant tax Benefit.

Related Terms: 15 Benefit, Debt, Deductible, ECU, FICA, Interest, ITS, Paid, Real, SEC, Sue, Tax, Trust, Tax-deductible, UIT
Other Related Pages: Category: Taxes Starting With: T
Additional Related Terms: 10-Q, Asset/equity ratio, Accrual of discount, Accrued interest, After-tax basis, Agency security, Amortization of premium, Asset-backed security, At par, All or any part