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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 MatchesStopping curve refunding rateStopping curve refunding rateA refunding rate that falls on the stopping curve. Junior refundingJunior refundingIssuing of new securities to refinance government debt that matures in one to five years. Net advantage of refundingNet advantage of refundingThe net present value of the savings from a refunding. Low coupon bond refundingLow coupon bond refundingRefunding of a low-coupon bond with a new, higher-coupon bond. PrerefundingPrerefundingProcedure of floating a second bond at a lower interest rate in order to pay off the first bond at the first call date and to reduce overall borrowing costs. Further SuggestionsSenior refundingHigh coupon bond refunding Refunding |
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