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refunding escrows deposits (REDS)
Definition
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.
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Nearby Terms
- refund
- refund annuity
- refund anticipation loan (RAL)
- refundable
- refunding
- refunding escrows deposits (REDS)
- refunding risk
- refurbish
- region
- regional aid
- regional bank



