What is Bond refunding?

Discussion in 'Trading' started by sammybea, Aug 5, 2003.

  1. sammybea

    sammybea

    And how does it effect the markets in general? I am a newbie in bonds and very confused on this issue. Thanks a lot.
     
  2. nitro

    nitro

    When interest rates fall steadily and continously, corporations may be able to save money by refunding their existing bond issues. It is similar to when you refi your house.

    nitro