Define: Junior Refunding

UK Accounting Glossary

Definition: Junior Refunding



Advertisement



Full Definition of Junior Refunding


Junior refunding refers to a refinancing of government or corporate debt. In a junior refunding the holders of bonds that are maturing in less than five years exchange those bonds for longer-term bonds. By exchanging short-term bonds for longer-term bonds, a junior refunding allows the government or corporation to postpone making principal payments on the bond debt. If a sufficient number of bondholders are amenable to a junior refunding, the payment of bond principal can, in theory, be deferred indefinitely. While it is possible to secure junior refunding when interest rates are dropping, corporations may be required to match the interest rates on their longer-term bonds in order to encourage more bondholders to participate in a junior refunding.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/junior-refunding/
Modern Language Association (MLA):
Junior Refunding. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 03, 2020 https://payrollheaven.com/define/junior-refunding/.
Chicago Manual of Style (CMS):
Junior Refunding. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/junior-refunding/ (accessed: April 03, 2020).
American Psychological Association (APA):
Junior Refunding. PayrollHeaven.com. Retrieved April 03, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/junior-refunding/

Definition Sources


Definitions for Junior Refunding are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.