refunding escrows deposits (REDS)


Forward purchase contracts that require investors to buy bonds at a pre-determined rate when they are issued at a future date. REDS were created to help counteract certain tax regulations placed on tax-exempt prefunding. The future date matches the first optional call date on existing high-rate bonds.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
refunding refunding risk