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High coupon bond refunding |
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High coupon bond refunding../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond.High coupon bond refunding Similar MatchesAdvance refundingAdvance 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. RefundingRefundingRedeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed. Stopping curve refunding rateStopping curve refunding rateA refunding rate that falls on the stopping curve. 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. Further SuggestionsSenior refundingNet advantage of refunding Low coupon bond refunding |
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