Prerefunded Bond

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Prerefunded bond

Refunded bond.

Refunded Bond

A bond whose principal is held in an escrow account, generally invested in Treasury securities or something else risk-free, until such time as the bond matures. That means that there is no possibility of default on the principal; as a result, refunded bonds usually have the highest possible credit ratings. They are also called prerefunded bonds.

prerefunded bond

A bond secured by an escrow fund of U.S. government obligations that is sufficient to pay off the entire issue of refunded bonds at maturity. The rating of the refunded bond generally assumes the rating of the government obligations (highest rating) at the time the fund is established. See also arbitrage bond.

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Advance Refunding Prerefunding Refund Refunded Bond			Insured or prerefunded bonds also limit credit risk. Tax aspects of municipal bonds by Fleming, Peter D. / Journal of Accountancy Due to this change in bond security, previous ratings assigned to bonds are no longer relevant and if escrows are properly structured, prerefunded bonds may qualify for an 'AAApre' rating from Fitch," said David Litvack, Managing Director and Chair of Fitch's Public Finance Criteria Committee. Fitch: New 'AAApre' Rating Designation for Prerefunded Municipal Bonds by Business Wire Prerefunded bonds will maintain their 'AAA' rating. Lehman Municipal Bond Index to Incorporate Fitch Ratings, June 1, 2005 by Business Wire			premium put Premium Put Convertible Premium Raid Premium Recovery Period Prensa financiera Prenuptial Agreement preopening indication Prepackaged Bankruptcy Prepaid Expense prepaid expenses prepaid interest prepaids Prepayment prepayment clause Prepayment of Premiums prepayment option prepayment penalty prepayment privilege prepayment risk Prepayment Speed prepayments Prepetition Liability preplanning Prequalification prequalify Prerefunded Bond Prerefunding presale Presale Order Prescricao prescription present value Present Value Components Analysis Present Value Factor Present Value Index Present Value Interest Factor present value of annuity Present value of growth opportunities present value of one Presenting Bank Presentment preservation district Preservation of Capital President Presidente Presidente del directorio Presidential Election Cycle Presidential Election Cycle Theory Presold Press Release Prestacao			Prequalifying Prequalifying Business prequel Prequel trilogy Prequels Prequential Conditional Predictive Ordinate Prequential Likelihood Ratio prequisiteness PRER PRERA prerace testing Preradovic, Petar Preraphaelism Preraphaelite preread head PREREADEX prereading prerecord prerecorded PreRecorded Friends prerecording Prerecording and Postsynchronization prerecords Prerefunded Bond Prerefunded Bonds Prerefunding preregister preregistered Preregistered Target preregistering preregisters preregistration Preregnant Preregular space Preregular topology prerelease Prerelease Change Order Preremote prerenal prerenal anuria prerenal azotemia prerenal azotemia prerenal azotemia prerenal failure prerenal uremia prerenal uremia prerenal uremia PREREP Prerequire prerequirement prerequisite prerequisite Prerequisite Course

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