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Junior refunding |
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Junior refundingIssuing of new securities to refinance government debt that matures in one to five years.Junior refunding 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. Advance 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. Net advantage of refundingNet advantage of refundingThe net present value of the savings from a refunding. Further SuggestionsLow coupon bond refundingHigh coupon bond refunding Prerefunding |
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