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Low coupon bond refunding |
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Low coupon bond refundingRefunding of a low-coupon bond with a new, higher-coupon bond.Low coupon bond refunding Similar MatchesHigh coupon bond refundingHigh coupon bond refunding../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond. Net advantage of refundingNet advantage of refundingThe net present value of the savings from a refunding. 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. Stopping curve refunding rateStopping curve refunding rateA refunding rate that falls on the stopping curve. Further SuggestionsJunior refundingRefunding Senior refunding |
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