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Advance refunding |
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Advance refundingIn the context of municipal bonds, refers to the sale of new bonds (the refunding issue) before the first call date of old bonds (the issue to be refunded). The refunding issue usually specifies a rate lower than the issue to be refunded, and the proceeds are invested, usually in government securities, until the higher-rate bonds become callable. See: Refunding escrow deposits.Advance refunding Similar MatchesNet advantage of refundingNet advantage of refundingThe net present value of the savings from a refunding. Stopping curve refunding rateStopping curve refunding rateA refunding rate that falls on the stopping curve. Low coupon bond refundingLow coupon bond refundingRefunding of a low-coupon bond with a new, higher-coupon bond. High coupon bond refundingHigh coupon bond refunding../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond. Junior refundingJunior refundingIssuing of new securities to refinance government debt that matures in one to five years. Further SuggestionsPrerefundingRefunding Senior refunding |
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