rediscounting


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Rediscount

To declare a discount for the second time. For example, an issuer may offer a bond at a discount from its par value to entice investors. If this does not work, the issuer may discount the bonds further in order to encourage people to buy the bond.

rediscounting

the secondary purchase and sale of BILLS OF EXCHANGE, TREASURY BILLS and BONDS between their original issue and final redemption. When a bill of exchange is first issued it is usually purchased (i.e. ‘discounted’) by a DISCOUNT HOUSE. The discount house may hold on to the bill until maturity, or it may choose to on-sell it to another discount house, in which case the bill is then ‘rediscounted’.

For example, if a bill with a face value of £1,000 redeemable in one year's time is sold initially for £900 (giving a £100 discount on its formal redemption value), then it might be resold or rediscounted for £950 after six months. See DISCOUNT, DISCOUNT MARKET.

rediscounting

the purchase and sale of BILLS OF EXCHANGE, TREASURY BILLS and BONDS between their issue and redemption dates. For example, if a bond with a nominal value of £1,000 redeemable in one year's time is sold initially for £900 (giving a £100 discount on its formal redemption value), then it might be resold or rediscounted for £950 after six months. See also DISCOUNT, DISCOUNT MARKET.
References in periodicals archive ?
Under previous rules, rediscounting loan rates were pegged at the BSP's benchmark overnight borrowing rate, which now stands at a record low of 3.
According to the BSP, loans extended under the rediscounting facility went down by 11.
The rediscounting facility allows banks to borrow an amount equivalent to the discounted value of its receivables.
The rediscounting facility of the BSP is intended to support lending operations of banks.
24 billion worth of peso-denominated loans from its rediscounting facility, up by nearly 70 percent from the P22.
The rest of rediscounting loans were for commercial credits or 28.
The BSP introduced major reforms in its peso rediscounting policies in 2013 in line with its lender-of-last-resort function.
Banks as well as non-bank financial institutions in three regions affected by the onslaught of tropical storm 'Maring' in September' can avail of temporary regulatory and rediscounting relief from the Bangko Sentral ng Pilipinas (BSP).
The Bangko Sentral ng Pilipinas (BSP) announced today that the Monetary Board has approved the termination of the sunset provision in favor of thrift banks (TBs), rural banks (RBs) and cooperative banks (CBs), resulting in a unified rediscounting window for all types of banks.
All the rediscounting of debt is done by creditors leaving the central location late.
BOAD's access to the rediscounting facility of the Central Bank of West African States (BCEAO) makes additional funds available to it.
Moody's further notes that the eligibility of BOAD's own debt instruments for rediscounting with the central bank supports its funding capacity on the regional capital market which is relatively liquid.