TY - JOUR T1 - Collateralization of Bond Interest JF - The Journal of Investing SP - 32 LP - 34 DO - 10.3905/joi.2005.605279 VL - 14 IS - 4 AU - Harold Bierman, Jr Y1 - 2005/11/30 UR - https://pm-research.com/content/14/4/32.abstract N2 - 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. ER -