Remarketable Bond

From Open Risk Manual

Definition

Remarketable Bond. A Corporate Bond program where the Coupon Rate on outstanding bonds is periodically reset through an auction process

Notes

A Remarketing Agent periodically surveys bond holders to identify those who want to sell bonds. The agent surveys market (or holds an auction) to determine the interest rate at which the bonds can be resold. The rate on all outstanding bonds resets at the new rate.

These programs are perpetual in the sense they often don't have a fixed maturity date, but the company can redeem them. If an auction fails, i.e., the agent can't place all the bonds.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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