• A particular financial asset.

 Embedded terms in definition
 Referenced Terms
 1099 oid: Is a form that reports Original Issue Discounts, which are a form of interest payment, to the Internal Revenue Service (IRS).

 Accrued interest: Is the amount of interest which has accumulated since the last coupon interest payment. It is the amount of interest which the holder is entitled but is not due until the payment date. The buyer pays the seller of the bond the accrued interest.The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer (unless the bond is in default).Interest due from Issue or from the last coupon date to the present on an interest-bearing security. The buyer of the security pays the quoted dollar price plus accrued interest.

 Advanced refunding: Is the technique of replacing one bond Issue by another. This typically occurs when a municipality can borrow at more favorable terms than the outstanding issue. The new issue's proceeds are used to purchase government obligations which are held in escrow. The income and/or appreciation of these government securities is then used to service the outstanding debt. The escrow may be held until the first call date or maturity of the initial bond issue. If the escrowed funds retire the original issue at the first call date then the issue is pre-refunded. This retirement and replacement process of debt is also known as defeasance.

 Agencies: Federal agency securities.Shorthand market terminology for any obligation Issued by a government-sponsored entity (GSE), or a federally related institution. Obligations of GSEs are not guaranteed by the full faith and credit of the US government. There are eight GSEs, five of which are currently active in the new issue market.Federal agency securities. See also agency bank.

 All or none underwriting: An arrangement whereby a security Issue is canceled if the underwriter is unable to re-sell the entire issue.

 Related Terms

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