Pitt instead created a sinking fund, using tax revenue to buy back bonds in the market.

ECONOMIST: What did early 19th-century literary characters live on?

When the British won a battle, investors anticipated the day that the government would stop issuing new bonds and turn to buying old ones via the sinking fund.

ECONOMIST: What did early 19th-century literary characters live on?

Most tobacco bonds have a so-called turbo structure (rather like a sinking fund).

FORBES: Bondholders Likely to Suffer From States' Tobacco-Funding Addiction