PT - JOURNAL ARTICLE AU - Harold Bierman, Jr TI - Collateralization of Bond Interest AID - 10.3905/joi.2005.605279 DP - 2005 Nov 30 TA - The Journal of Investing PG - 32--34 VI - 14 IP - 4 4099 - https://pm-research.com/content/14/4/32.short 4100 - https://pm-research.com/content/14/4/32.full AB - Collateralization of bond interest is a new development in corporate finance. If the investor accepts a lower interest, then it is possible for the borrower to have a lower borrowing cost. This article shows that there is no reason to think the borrowing cost is lowered if the funds used to collateralize the interest are borrowed.