Refunding of a low-coupon Bond with a new, higher-coupon bond.
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advance refunding investment & finance definition
Issuing a bond or note with a longer maturity period than the original issue in order to pay off that original issue.
Advance refunding is a common method used by local governments to delay the need to make payments of the outstanding bonds, while still maintaining current status with outstanding debt.
Understanding "Call" and Refunding Risk
One of the most difficult risks for investors to understand is that posed by "call" and refunding provisions.
REFUNDING - A procedure whereby an issuer refinances outstanding bonds by issuing new bonds.
Refunding Replacement of existing debt with a new issue of debt.
Regression Analysis A statistical technique for fitting best line through data.
Regular Dividend Dividend that is expected to be maintained at regular time intervals.
Refunding
The redemption of a bond with proceeds received from issuing lower-cost debt obligations ranking equal to or superior to the debt to be redeemed.
Refunding
The retiring of a debt instrument using proceeds from the issuance of a new debt instrument.
Refunding
Retiring an outstanding bond issue at maturity by using money from the sale of a new offering.
Reinvestment Rate ...
Refunding: Redemption of securities by funds raised through the sale of a new issue. In the Treasury market, the refunding typically refers to the quarterly auctions at which the Treasury sells 5, 10, and 30-year notes and bonds.
Refunding - The retiring of a debt instrument by issuing a new debt instrument.
Reg T Excess - In a margin account, the amount by which the loan value exceeds the debit balance.
Refunding: Selling a new bond issue and using the proceeds to call an outstanding issue (usually done to decrease interest costs or extend maturity). Also called refinancing.
Prerefunding
Procedure 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.
Refunding Escrow Deposits (REDs)
A financial instrument involving a forward purchase contract that obligates investors to buy bonds at a certain rate when issued.
Senior refunding
Replacement 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.
Same as refunding. New securities are sold by a company and the money is used to retire existing securities. Object may be to save interest costs, extend the maturity of the loan, or both.
Advanced Refunding: Advanced refunding is the technique of replacing one bond issue with another bond issue. Advanced refundings typically occur when a municipality can borrow at more favorable terms than the terms of an outstanding bond issue.
senior refunding The exchange of bonds for other bonds with longer maturity durations. Opposite of junior refunding. senior security A security that has priority over other securities, with respect to claims or bankruptcy liquidation.
Government debt that is refinanced and matures in 1-5 years through the issuance of new securities that will mature greater than 5 years is termed JUNIOR REFUNDING.
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[BEA] advance package advance refunding (A) The refunding of an outstanding issue of securities by the issuance and delivery of a new issue of securities prior to the date on which the outstanding issue of securities can be redeemed or paid in ...
on the Amex - or do they?" IDD, Aug. 22, 1994, p. 10.) Yield Burning Definition: The IRS's name for the dealer's crime of overcharging state and local governments and authorities for Treasury securities that they use in "advanced refunding" ...
Refunding The retiring of a bond by issuing a new bond. Repair Strategy A stock/option strategy designed to compensate for a losing long stock position. In this case, an in-the-money call is purchased and two out-of-the-money calls are sold.
EMMA provides free public access to disclosure documents, including official statements and refunding documents submitted to the MSRB since 1990 as well as real-time municipal securities trade price data.
Fitch Rates Nashua, NH's GO Refunding Bonds 'AAA'; Outlook Stable
Publish Date: Mar 09, 2012 11:17 AM
Fitch Takes Various Rating Actions on MEAG (GA) Project One Sub Bonds, Series 2008B
Publish Date: Mar 09, 2012 11:06 AM ...
Restricted tax-exemption on Municipal Bonds to Public Purpose Bonds and specified Private Purpose Bonds. Imposed caps on the dollar amount of permitted private purpose bonds. Limited Prerefunding.
 See also: Issue, Bonds, Interest, Investment, Securities
  
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