A unique identification number assigned to a bond by the Committee on Uniform Securities Identification Procedures (“CUSIP”).
Bonds are generally designated with a letter and a number. The correct procedure for designating the Bonds can be found in the Indenture or Bond Resolution. To further identify the Bond, each single Bond is numbered consecutively from one upwards. For example, each Bond could carry the letter “R” followed by a hyphen and a number. Therefore, the first Bond would be labeled “R-1.” If more than one series of Bonds are being issued at the same time or in the same year, the Bonds would carry the letter “R” followed by a letter. Under such a convention, the first Bond of the first series would be labeled “RA-1” and the first Bond of the second series would be labelled “RB-1” to avoid duplicate numbering.
Learn about over various terms and concepts that may arise while preparing a bond issue.