Undated issue
A floating-rate note with no stated maturity date (also known as "perpetual floating-rate note").
Underlying futures contract
The specific futures contract that is bought or sold by exercising an option.
Underwriting
The process of evaluating a loan application to determine the risk involved for the lender. It involves an analysis of the borrower's ability and willingness to repay the debt, and the value of the property.
Unit
A fractional, undivided interest in a unit investment trust.
Unit investment trust
Investment funds created with a fixed portfolio of investments that never changes over the life of the trust. They are created by brokerage houses, and are liquidated as investments within the trust are paid off. They provide a steady, periodic flow of income to investors. A unit investment trust is an organization that creates a portfolio by investing funds in securities, such as Ginnie Mae securities. The trust sells units, which represent equal shares in its investment portfolio, and the buyers of the units become beneficial holders of the trust's investments. This means that the investors do not have direct ownership of the financial instruments purchased by the trust. Thus, the U.S. government guarantee on the financial instruments, such as Ginnie Mae securities, does not apply to the units themselves.
Unlimited tax bond
A bond secured by the pledge of taxes that are not limited by rate or amount.
Upgrade
An improved credit rating issued by a rating company.
Utility bond
Bonds issued by companies in the utility sector, which may include electric, gas and water utility companies.