- refunding bonds
- Bonds issued to replace outstanding bond issues. Usually used to replace callable bonds when interest rates drop. American Banker Glossary
* * *refunding bonds UK US noun [plural] STOCK MARKET► new bonds that replace old bonds that have matured (= been paid back), and that may be sold for cash or exchanged for the older bonds: »
The Fund may also invest without limit in advance refunding bonds.
Financial and business terms. 2012.
Look at other dictionaries:
refunding bonds — The replacement of one obligation with another, including the selling of new securities for the purpose of redeeming those outstanding. 43 Am J1st Pub See § 156. Bonds issued in replacement of outstanding bonds, constituting obliga tions in… … Ballentine's law dictionary
refunding escrow deposits — ( REDs) Financial instruments similar to pre refunding bonds. Tax law changes in 1984 restricted tax exempt pre refundings for certain types of municipal debt including airport and convention center related debt. To circumvent those restrictions … Financial and business terms
refunding — index compensatory Burton s Legal Thesaurus. William C. Burton. 2006 refunding … Law dictionary
Refunding — occurs when an entity that has issued callable bonds calls those debt securities from the debt holders with the express purpose of reissuing new debt at a lower coupon rate. In essence, the issue of new, lower interest debt allows the company to… … Wikipedia
Refunding Certificate — The Refunding Certificate, issued only in the $10 denomination, was a type of interest bearing banknote issued by the United States Treasury. Their issuance reflects the end of a coin hoarding period which began during the American Civil War, and … Wikipedia
Refunding — The process of retiring or redeeming an outstanding bond issue at maturity by using the proceeds from a new debt issue. The new issue is almost always issued at a lower rate of interest than the refunded issue, ensuring significant reduction in… … Investment dictionary
refunding — Type of refinancing (q.v.) in which the issuer of bonds replaces outstanding bonds with a new issue. In general, any act of repayment of a loan or money advanced. See also recapitalization refinance … Black's law dictionary
Crossover Refunding — A local government s issuance of new municipal bonds (called refunding bonds) in which the proceeds of the refunding bonds are placed in escrow and used to make debt service payments on the refunding bonds until the call date of the original… … Investment dictionary
Pre-Refunding Bond — A type of bond issued to fund another callable bond, where the issuer actually decides to exercise its right to buy its bonds back before the scheduled maturity date. The proceeds from the issue of the lower yield and/or longer maturing pre… … Investment dictionary
pre-refunding — ( pre re) The sale of bonds used to obtain funds that are then placed in escrow to back bonds previously issued. The first issue typically comprises bonds that were originally issued at high, fixed coupon rates and that could not be called when… … Financial and business terms