Investor Glossary-junior refundingInvestor Glossary-junior refundingInvestor Glossary-junior refundingInvestor Glossary-junior refundingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Junior Refunding

The HTML to link to this page
 

Junior refunding refers to a refinancing of government or corporate debt. In a junior refunding the holders of bonds that are maturing in less than five years exchange those bonds for longer-term bonds. By exchanging short-term bonds for longer-term bonds, a junior refunding allows the government or corporation to postpone making principal payments on the bond debt. If a sufficient number of bond holders are amenable to a junior refunding, the payment of bond principal can, in theory, be deferred indefinitely. While it is possible to secure junior refunding when interest rates are dropping, corporations may be required to match the interest rates on their longer-term bonds in order to encourage more bond holders to participate in a junior refunding.



Rate this junior refunding definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1035 exchange, phantom income, command economy, diluted share, LIBOR, per diem, ex-dividend date, debt service coverage, cancelled check, Zero Cost Collar, dividends payable, implied volatility, 1031 exchange, labor relations, 144a, covered put, irrevocable trust, class C shares, quality assurance, liquidity ratio, annual return, deferred tax, margin rate, reverse mortgage, deferred revenue, inflation, stock market close, limit order, retained earnings, VIX, current ratio, FTSE, Key Rate Duration, balance sheet, APR, required rate of return, stock split, FICO score, 401a, minority interest, open position, real GDP, option premium, wholly-owned subsidiary, risk management, ex-dividend, in escrow, average price per share, EBITDA


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use