What are the returns generated from reinvested bond proceeds called?

The term that accurately describes the returns generated from reinvested bond proceeds is "investment earnings." When bond proceeds are reinvested, typically in other investment vehicles or interest-bearing accounts, the interest or income generated by those reinvestments is classified as investment earnings. This encompasses all forms of income received from these investments, which can include interest payments, dividends, or other forms of revenue from the reinvested proceeds.

Understanding this terminology is vital for municipal finance officers, as it impacts how financing strategies are assessed and reflects the overall performance of invested funds from bonds. The concept of investment earnings is central to financial reporting and budgeting, enabling municipalities to accurately account for and plan their financial resources.