advance refunding

简明释义

套期转换［债券］

英英释义

例句

1.The city decided to engage in advance refunding to take advantage of lower interest rates.

该市决定进行提前再融资以利用更低的利率。

2.The financial advisor recommended advance refunding as a strategy to improve cash flow.

财务顾问推荐将提前再融资作为改善现金流的策略。

3.Through advance refunding, the company was able to reduce its debt service costs significantly.

通过提前再融资，公司能够显著降低其债务服务成本。

4.The school district utilized advance refunding to refinance its outstanding bonds.

学区利用提前再融资来再融资其未偿还的债券。

5.Investors were excited about the potential savings from the advance refunding transaction.

投资者对提前再融资交易可能带来的节省感到兴奋。

作文

In the world of finance, various strategies are employed to manage debt and optimize cash flow. One such strategy is called advance refunding, which plays a crucial role in the management of municipal bonds. advance refunding refers to the process whereby an issuer refinances an existing bond before its maturity date by issuing new bonds. This is typically done to take advantage of lower interest rates or to restructure debt obligations. The proceeds from the newly issued bonds are used to pay off the existing bonds, allowing the issuer to save on interest payments or extend the maturity of their debt.The concept of advance refunding is particularly relevant for municipalities that rely heavily on bond financing for infrastructure projects. When interest rates decline, municipalities can issue new bonds at a lower rate than the existing bonds they hold. By executing an advance refunding, these municipalities can lock in lower rates, resulting in significant savings over time. This practice not only benefits the municipalities but also the taxpayers, as it can lead to reduced tax burdens in the long run.However, the process of advance refunding is not without its complexities. There are specific regulations and guidelines that govern how and when this process can occur. For instance, the Internal Revenue Service (IRS) has established rules regarding the use of proceeds from the new bonds and the timing of the refunding. If the advance refunding is not executed within the prescribed limits, it may lead to adverse tax consequences for the issuer. Therefore, it is essential for municipalities to work closely with financial advisors and legal counsel to ensure compliance with all regulations.Another important aspect of advance refunding is its impact on the overall bond market. When many municipalities engage in advance refunding simultaneously, it can lead to an increase in the supply of bonds in the market. This influx can put downward pressure on bond prices, affecting yields across the board. Investors need to be aware of these dynamics, as they can influence their investment decisions and overall portfolio performance.In conclusion, advance refunding is a valuable financial tool for municipalities looking to optimize their debt management strategies. By refinancing existing bonds before their maturity, issuers can take advantage of lower interest rates and improve their financial standing. However, the complexities and regulatory requirements associated with advance refunding necessitate careful planning and execution. As the financial landscape continues to evolve, understanding the implications of advance refunding will remain essential for both issuers and investors alike. This strategy not only aids in fiscal responsibility but also contributes to the broader economic health of communities that rely on sound financial practices to fund essential services and infrastructure developments.

在金融世界中，各种策略被用来管理债务和优化现金流。其中一种策略被称为提前再融资，它在市政债券的管理中发挥着至关重要的作用。提前再融资是指发行人在现有债券到期日前通过发行新债券来再融资现有债券的过程。这通常是为了利用更低的利率或重组债务义务。新发行债券的收益用于偿还现有债券，使发行人能够节省利息支付或延长债务的到期时间。提前再融资的概念对于依赖债券融资进行基础设施项目的市政当局尤其相关。当利率下降时，市政当局可以以低于他们持有的现有债券的利率发行新债券。通过执行提前再融资，这些市政当局可以锁定更低的利率，从而在长期内实现显著的节省。这一做法不仅使市政当局受益，也使纳税人受益，因为这可能导致长期内减轻税负。然而，提前再融资的过程并非没有复杂性。有关此过程何时以及如何发生的特定法规和指导方针。举例来说，国税局（IRS）已制定了关于新债券收益使用和再融资时机的规则。如果提前再融资未在规定的限度内执行，可能会导致发行人产生不利的税收后果。因此，市政当局必须与财务顾问和法律顾问紧密合作，以确保遵守所有法规。提前再融资的另一个重要方面是其对整体债券市场的影响。当许多市政当局同时进行提前再融资时，可能会导致市场上债券供应的增加。这种涌入可能会对债券价格施加下行压力，影响收益率。投资者需要意识到这些动态，因为它们可能会影响他们的投资决策和整体投资组合表现。总之，提前再融资是市政当局希望优化债务管理策略的宝贵金融工具。通过在到期前再融资现有债券，发行人可以利用更低的利率并改善其财务状况。然而，与提前再融资相关的复杂性和监管要求需要谨慎的规划和执行。随着金融环境的不断演变，理解提前再融资的影响将对发行人和投资者都至关重要。这一策略不仅有助于财政责任，还有助于依赖良好金融实践来资助基本服务和基础设施发展的社区的整体经济健康。