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Equity funding |
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Equity fundingAn investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, give the investor the advantages of insurance protection with the growth potential of a mutual fund.Equity funding Similar MatchesSenior refundingSenior refunding../../finance-glossary/ment by the issuer of securities with 5-to 12-year maturities with securities of 15-year or longer maturities, in order to delay, reduce, or consolidate payment. Minimum funding requirementMinimum funding requirementA rule introduced in the wake of the Maxwell pensions scandal which was intended to ensure that company pensions funds always had enough assets to pay out their liabilities (i.e. pensions to retired members of the scheme).The legislation uses the yield from long term gilts as the yardstick by which a pensions fund's liabilities are measured. To stay within the rules, funds have felt obliged to buy these long-term bonds, with the result that their price has gone sky high.One alternative being considered is to change the whole way liabilities are valued and, in effect, to allow the funds to invest in more exciting securities than gilts, but to couple this with an insurance fund that bails out those funds that are unable to meet their liabilities. This insurance fund would be called the Central Discontinuance Fund (CDF). 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. Junior refundingJunior refundingIssuing of new securities to refinance government debt that matures in one to five years. High coupon bond refundingHigh coupon bond refunding../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond. Further SuggestionsFunding riskLow coupon bond refunding Funding Private Export Funding Corporation (PEFCO) Advance refunding Resolution Funding Corporation (RefCorp) Refunding Stopping curve refunding rate Evergreen funding Net advantage of refunding |
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