What is Bond refunding?

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

  1. 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


    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.