Junior Refunding: Issuing of new securities to refinance government debt that matures in one to five years.
Prerefunding: Prerefunding may occur when a corporation plans to redeem a callable bond before its maturity date. If that's the case, the bond is identified as a prerefunded bond. To prerefund, the issuer . . . View Full Definition
Net Advantage Of Refunding: The net present value of the savings from a refunding.
Refunding: Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.
Refunding Escrow Deposits (Reds): A financial instrument involving a forward purchase contract that obligates investors to buy bonds at a certain rate when issued. The future date coincides with the first optional call date . . . View Full Definition
Subordinated Debt (Junior Debt): Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debt-holders receive payment only after senior debt is paid in full. A subordination of security interest . . . View Full Definition
Stopping Curve Refunding Rate: A curve showing the refunding rates for different times at which the expected value of refunding immediately equals the expected value of waiting to refund.
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.
Low-Coupon Bond Refunding: Refunding of a low-coupon bond with a new, higher-coupon bond.
Junior-Community College: A Junior/Community College is a two-year institution of higher education. Course offerings generally include a transfer curriculum with credits transferable toward a bachelor's degree at a f . . . View Full Definition