Escrowed to Maturity

Also found in: Encyclopedia.

Escrowed to Maturity (ETM)

Holding of the proceeds from a new bond issue to pay off an existing bond issue at its maturation date.

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.

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.
References in periodicals archive ?
Reserves dedicated to the MWPAT SESD program bonds substantially exceed these levels because some of the MWPAT SESD bonds have been escrowed to maturity through refunding bonds issued through the MWPAT state-wide pool program.
The series 2001A serial bonds maturing June 1, 2006-2011 are escrowed to maturity.
The serial bonds maturing May 15, 2007-2010 have been escrowed to maturity.