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 Residual Assets:
- Examples Assets that remain after sufficient assets are dedicated to meet all senior debtholders' claims in full refunding escrow deposits (reds) definition.
- Definition Run:
- Examples A run consists of a series of bid and offer quotes for different securities or maturities. Dealers give and ask for runs from each other refunding escrow deposits (reds) explain.
- Definition Release Clause:
- Examples A mortgage provision that releases a pledged asset after a certain portion of the total payments has been made refunding escrow deposits (reds) what is.
- Definition Reporting Currency:
- Examples The currency in which the parent firm prepares its own financial statements; that is, U.S. dollars for a U.S. company refunding escrow deposits (reds) meaning.
- Definition Refunded Bond:
- Examples prerefunded bond, a bond that originally may have been issued as a general obligation or revenue bond but that is now secured by an escrow fund consisting entirely of direct U.S. government refunding escrow deposits (reds) abbreviation.
