Escrowed to Maturity(redirected from Escrow to Maturity)
Escrowed to Maturity (ETM)
Holding of the proceeds from a new bond issue to pay off an existing bond issue at its maturation date.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Escrowed to Maturity
Describing a bond that has had its proceeds placed in an escrow account until another bond matures. That is, the issuer places the funds from the ETM bond into an account to set them aside in order to pay off a second bond at its maturity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
escrowed to maturity
Used to describe a bond that has been prerefunded to the degree that cash flows will match the debt obligation to the retirement date.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.