HomeDefinitionsCompareDebt RefundingThe financial definition for 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. Similar MatchesAdvance refundingAdvance refundingIn 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. High 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. Further SuggestionsLow coupon bond refundingNet advantage of refunding Prerefunding Senior refunding Stopping curve refunding rate Click to compare definitions of Refunding Click to view definitions beginning re |