Serial redemption

Serial redemption

Serial Redemption

The gradual maturity of a serial bond. A serial bond is an issue of bonds that gradually matures at regular intervals until the whole issue matures. The serial redemption feature of these bonds is most useful in the financing of a project with regular income streams with which to pay off the serials. Serial bonds (and therefore serial redemption) are more common among corporate bonds than municipal bonds.
References in periodicals archive ?
Nevertheless, the resultant cost of negative carry may be offset by MBSB's option of purchasing additional receivables and the serial redemption of the Tranche one Sukuk, making the transaction more sensitive to low prepayment rates.