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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 MatchesRefundingRefundingRedeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed. Senior 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. 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. 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. Low coupon bond refundingLow coupon bond refundingRefunding of a low-coupon bond with a new, higher-coupon bond. Further SuggestionsStopping curve refunding rateHigh coupon bond refunding Net advantage of refunding |
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