Difference between revisions of "Remarketable Bond"

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== Definition ==
 
== Definition ==
'''Remarketable Bond'''. Corporate bond program where the coupon rate on outstanding bonds is periodically reset through an auction process
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'''Remarketable Bond'''. A [[Corporate Bond]] program where the [[Variable Coupon Bond | Coupon Rate]] on outstanding bonds is periodically reset through an auction process
  
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== Notes ==
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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.
  
== Issues and Challenges ==
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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.
A remarketing agent (dealer or underwriter) periodically surveys bond holders to identify those who want to sell bonds. The agent surveys market (or holds an auction) to determine 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 then.
 
  
 
== Disclaimer ==
 
== Disclaimer ==

Latest revision as of 22:29, 8 November 2019

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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