Pre-Funded Bond
Categories: Bonds
See: Advance Refunding.
When a bond is pre-funded, it is already...funded. That is, the cash to pay off that bond is already "there," wherever "there" is, so that risk to the lender is usually extremely small.
We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
See: Advance Refunding.
When a bond is pre-funded, it is already...funded. That is, the cash to pay off that bond is already "there," wherever "there" is, so that risk to the lender is usually extremely small.