Meaning REFUNDING ESCROW DEPOSITS (REDS): A financial instrument involving a forward purchase contract that obligates investors to buy bonds at a certain rate when issued. The future date coincides with the first optional call date on an existing high-rate bond. In the interim, investors' money is invested in secondary market Treasury bonds. The Treasuries mature around the call date on the existing bonds, providing the money to buy the new issue and redeem the old one
More terms such as Refunding Escrow Deposits (REDs) in Dictionary R.
- Definition Regulated Investment Company:
- Examples company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided refunding escrow deposits (reds) definition.
- Definition Remaining Principal Balance:
- Examples The amount of principal dollars remaining to be paid under a mortgage as of a given time refunding escrow deposits (reds) explain.
- Definition Round-Trip Trade:
- Examples The purchase and sale of a security within a short period of time refunding escrow deposits (reds) what is.
- Definition Reorganization Bond:
- Examples A bond issued by a company undergoing a reorganization process refunding escrow deposits (reds) meaning.
- Definition Rule 144a:
- Examples SEC rule allowing qualified institutional buyers to buy and trade unregistered securities refunding escrow deposits (reds) abbreviation.
