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


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