HomeDefinitionsCompareDebt Advance refundingThe financial definition for Advance refunding:In 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. Similar MatchesHigh coupon bond refundingHigh coupon bond refunding../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond. Junior refundingJunior refundingIssuing of new securities to refinance government debt that matures in one to five years. Low coupon bond refundingLow coupon bond refundingRefunding of a low-coupon bond with a new, higher-coupon bond. Further SuggestionsNet advantage of refundingPrerefunding Refunding Senior refunding Stopping curve refunding rate Click to compare definitions of Advance refunding Click to view definitions beginning ad |