| Balloon Maturity | |
 1. A repayment schedule for a bond issue where a large number of the bonds come due at a one time (normally at the final maturity date). 2. A final loan payment that is considerably higher than prior payments. This is also known as a "balloon payment." |
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 When a balloon maturity occurs, a company must pay the principle back to borrowers on many bonds at once. If the company is short on cash then it may have trouble making all the payments. |
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 Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial. |
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