Arbitrage bonds

Arbitrage Bonds
Arbitrage Bonds definition :
Municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date.

arbitrage bonds
bonds issued by a municipality in order to gain an interest rate advantage by refunding higher-rate bonds in advance of their call date.

ARBITRAGE BONDS - Municipality issued bonds issued intended to gain an interest rate advantage by refun...
ARBITRAGE CDO - A CDO whose purpose is to allow a money manager to expand assets under management and e...

ARBITRAGE BONDS - Bonds initially issued on a tax-exempt basis that are formally deemed by the Internal Revenue Service to violate federal arbitrage regulations.

However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income, or
U.S. source interest income that is not connected with a U.S.

Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs.
Arbitrage bonds ...

See also: Call date, Funding, First call date, First call, Refunding