Funding risk


 

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Funding risk

Related: Interest rate risk



Funding risk

Similar Matches

Refunding

Refunding

Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.


Senior refunding

Senior 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 requirement

Minimum funding requirement

A 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).


Funding

Funding

Used to describe the refinancing of a debt prior to its maturity (the same as refunding). In corporate finance refers to the floating of bonds to raise finance and levels of capital. See also: refunding.


Low coupon bond refunding

Low coupon bond refunding

Refunding of a low-coupon bond with a new, higher-coupon bond.


Further Suggestions

Stopping curve refunding rate
High coupon bond refunding
Net advantage of refunding
Advance refunding
Resolution Funding Corporation (RefCorp)
Prerefunding
Evergreen funding
Junior refunding
Private Export Funding Corporation (PEFCO)
Equity funding


 
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