Bond Refunding
/ˈbɒnd rɪˌfʌndɪŋ/
Definitions
- (n.) The process by which an issuer retires outstanding bonds by issuing new bonds to take advantage of lower interest rates or better terms.
The city undertook bond refunding to reduce its interest expenses on outstanding debt.
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Commentary
Bond refunding is a common financial strategy used by municipal and corporate issuers to optimize debt costs, often involving call provisions allowing early redemption of prior bonds.
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