General obligation county debt and district debts are all overlapping.
What does it mean to defease a bond?
A defeasance is a financing tool by which outstanding bonds may be retired without a bond redemption or implementing an open market buy-back. … This occurs because the government securities generate the cash flow needed to pay all interest and principal on the outstanding bonds when due.
What is a workable indication?
Understanding Workable Indication Simply put, a workable indication is a nominal quote showing the price at which a dealer is willing to either buy or sell an individual bond issue. … A workable indication usually a one-sided quote; that is, either a bid price or an asked price.
What is a double barreled Muni?
A double-barreled bond is a municipal bond whereby the interest and principal payments are pledged or backed by two distinct entities. A double-barreled bond is backed by the revenue generated from the project the bond is funding as well as the local government.Which investment has the lowest level of reinvestment risk?
Short-term investments have minimal reinvestment risk; and zero-coupon obligations have no reinvestment risk.
What does it mean when a bond is refunded?
Understanding Refunded Bond By definition, the term “refunding” means refinancing another debt obligation. … The bonds which are issued to refund older bonds are called refunding bonds or pre-refunding bonds. The outstanding bonds which are paid off using proceeds from refunding bonds are called refunded bonds.
What is debt to assessed valuation?
The term net debt to asset valuation refers to the total amount of a municipality’s debt compared to the value of total assets that are assessed or purchased for a municipal bond issue. Net debt to assessed valuation allows investors to determine the overall quality of a municipal bond issue.
What is the difference between yield maintenance and defeasance?
Yield maintenance is the actual prepayment of the loan, while defeasance entails a substitution of collateral and a legal assumption of the loan by the successor borrower. A yield maintenance prepayment has two components: the unpaid principal balance of the loan and a prepayment penalty.What does pre refunded bond mean?
What Is a Pre-Refunding Bond? A pre-refunding bond is a debt security that is issued in order to fund a callable bond. With a pre-refunding bond, the issuer decides to exercise its right to buy its bonds back before the scheduled maturity date.
Is debenture a debt?A debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. … Both corporations and governments frequently issue debentures to raise capital or funds. Some debentures can convert to equity shares while others cannot.
Article first time published onWhich of the following best describes a double-barreled bond?
Which of the following best describes a double-barreled bond? (A double-barreled bond is a general obligation bond, but it possesses a revenue source which may or may not be adequate for debt service payments.) … Nominal yield, or stated rate,is less than YTC.
What are barrel bonds?
A bearer bond is a bond or debt security issued by a business entity such as a corporation or a government. … Whoever physically holds the paper on which the bond is issued is the presumptive owner of the instrument. This is useful for investors who wish to retain anonymity.
Which ratio test is used to analyze a revenue bond?
In summary, the debt service coverage ratio is used to analyze revenue bonds, while community demographics and tax service ratios are used to analyze GO bonds.
What is an out firm quote?
A dealer quotation that commits itself to honor the quote for a set period. For example, if Dealer A gives Dealer B a quote of 7.50 basis firm for one hour.
What is a nominal quote?
A nominal quotation is a hypothetical price at which a share of stock or some other security might trade. The opposite of a nominal quotation is a firm quotation, which represents a binding offer to trade at a specific price.
What is the safest bond to buy?
The three types of bond funds considered safest are government bond funds, municipal bond funds, and short-term corporate bond funds.
Which security is most subject to reinvestment risk?
- Reinvestment risk is the chance that an investor will have to reinvest money from an investment at a rate lower than its current rate.
- Reinvestment risk is most commonly found with bonds.
- Noncallable bonds help stop reinvestment risk.
What is the safest fixed income investment?
If you want to protect your principal with a safe investment, then bonds are a good option. Some of the safest bonds include savings bonds, Treasury bills, banking instruments, and U.S. Treasury notes. Other safe bonds include stable value funds, money market funds, short-term bond funds, and other high-rated bonds.
What is per capita debt?
A measure of how much debt a government has per citizen. Calculated by adding short-term debt and long-term debt, subtracting cash and other liquid assets, and dividing by the population. There is currently no content classified with this term.
What is Net direct debt?
Net Direct Debt is the County’s gross debt (including notes, loans, and capital leases) minus debt supported entirely by specific user fees. Net Direct Debt is Gross Direct Debt less obligations or leases paid from non-tax sources.
What is adjusted net debt?
Adjusted Net Debt means the sum of the Indebtedness of the Company and its Subsidiaries less the cash of the Company and its Subsidiaries.
Why do governments refund bonds?
Refunding bonds are bonds that are issued to replace and refinance outstanding general obligation or revenue bonds (chapter 39.53 RCW). The use of a refunding mechanism is often driven by the desire to lower interest rates and reduce payment amounts on older, more expensive debt.
How do I get my bond money back?
If it is cash bail and you pay the full bail amount, the money will be returned to you if the defendant shows up on all the hearing dates. If he won’t, you will never get your money again. Bond can only be discharged if: A defendant found not guilty on the charge.
What is a crossover refunding?
Crossover refunding refers to the issuing of a new bond where the proceeds are placed in escrow to redeem a previously issued higher-interest bond.
Are pre-refunded bonds safe?
Pre-refunded bonds are securities that are typically escrowed in U.S. Treasury bonds or other obligations of the federal government. The bonds in escrow come due on the pre-refunded date and represent the ultimate in safety. There is virtually no chance that these bonds will not be redeemed on their pre-refunded date.
What is the difference between a current refunding and advance refunding?
A current refunding is one in which the outstanding (refunded) bonds are redeemed within 90 days of the date the refunding bonds are issued. In an advance refunding, the refunded bonds are redeemed more than 90 days from the date the refunding bonds are issued.
What is advance refunding?
Advance refunding refers to the practice of taking the funds received from a new bond issuance to pay off a prior issue’s debt. … The issue of the new bond is, usually, at a lower interest rate than the older, unpaid obligation.
How long does it take to defease a loan?
A defeasance guarantees that the loan payments will continue to be met, even after the property is released. Defeasance transactions generally close within 20 to 35 days from start to finish, but they can be completed in as little as a week if a borrower is on a tight schedule.
What is subordination in real estate?
Subordination is the process of ranking home loans (mortgage, HELOC or home equity loan) by order of importance. When you have a home equity line of credit, for example, you actually have two loans – your mortgage and HELOC. … Through subordination, lenders assign a “lien position” to these loans.
What does alienation mean in real estate?
Alienation refers to the process of a property owner voluntarily giving or selling the title of their property to another party. When property is considered alienable, that means the property is able to be sold or transferred to another party without restriction.
What is meant by sinking fund?
A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue.
