advance refunding

简明释义

公债提前转期［美国］

英英释义

例句

1.Investors often look for opportunities to engage in advance refunding 提前再融资 when market conditions are favorable.

投资者通常在市场条件有利时寻找参与advance refunding 提前再融资的机会。

2.Many municipalities use advance refunding 提前再融资 to manage their long-term debt more effectively.

许多市政当局使用advance refunding 提前再融资来更有效地管理长期债务。

3.The city council decided to proceed with the advance refunding 提前再融资 of its existing bonds to take advantage of lower interest rates.

市议会决定进行现有债券的advance refunding 提前再融资，以利用较低的利率。

4.By utilizing advance refunding 提前再融资, the school district was able to save millions in interest payments.

通过利用advance refunding 提前再融资，学区能够节省数百万的利息支出。

5.The financial advisor recommended advance refunding 提前再融资 as a strategy to reduce debt service costs.

财务顾问建议将advance refunding 提前再融资作为降低债务服务成本的策略。

作文

In the realm of finance, particularly in the context of municipal bonds, the term advance refunding refers to a strategy employed by issuers to refinance existing debt before it matures. This process allows municipalities to take advantage of lower interest rates and improve their financial position. Essentially, advance refunding involves issuing new bonds to raise funds that are then used to pay off the principal and interest of the old bonds. This can be particularly beneficial when market conditions change and interest rates decrease after the original bonds were issued.The mechanics of advance refunding are quite straightforward. A municipality might issue a new bond at a lower interest rate, and the proceeds from this bond are placed in an escrow account. This account is then used to make the scheduled payments on the old debt until it is callable or matures. This strategic maneuver not only lowers the overall cost of borrowing but also provides the issuer with increased cash flow flexibility.One of the primary advantages of advance refunding is the potential for significant savings in interest costs. When a municipality can refinance its debt at a lower rate, the savings can be substantial over the life of the bonds. This is particularly important for cities and towns that may face budget constraints or need to allocate funds to other critical services such as education, public safety, or infrastructure development.However, it is essential to note that advance refunding is subject to certain regulations and restrictions. For example, the IRS has specific rules regarding the use of tax-exempt bonds for refunding purposes. These regulations are designed to prevent arbitrage, where issuers could profit from the difference between the interest earned on the escrowed funds and the interest paid on the bonds. As a result, municipalities must carefully navigate these rules to ensure compliance while still achieving the desired financial outcomes.Moreover, the timing of advance refunding is crucial. Municipalities need to assess the market conditions and determine the right moment to initiate the refunding process. If interest rates are expected to rise, waiting too long could negate the benefits of refinancing. Conversely, if rates are low, acting quickly can lock in savings and enhance the municipality's financial health.In conclusion, advance refunding serves as a valuable tool for municipalities looking to manage their debt more effectively. By taking advantage of lower interest rates and improving cash flow, cities and towns can better serve their communities and invest in essential services. However, careful consideration of regulatory requirements and market conditions is vital to successfully implementing this strategy. As municipalities continue to face financial pressures, understanding and utilizing techniques like advance refunding will be increasingly important for maintaining fiscal stability and promoting growth.

在金融领域，特别是在市政债券的背景下，术语提前再融资指的是发行人用来在债务到期之前重新融资的策略。这一过程使市政当局能够利用较低的利率并改善其财务状况。基本上，提前再融资涉及发行新债券以筹集资金，然后用这些资金支付旧债券的本金和利息。当市场条件发生变化，利率在原债券发行后下降时，这种做法尤其有利。提前再融资的机制相当简单。一个市政当局可能会以较低的利率发行新债券，而这笔债券的收益将被放入一个托管账户。然后，该账户用于在旧债务可赎回或到期之前进行定期支付。这一战略举措不仅降低了整体借款成本，还为发行者提供了更大的现金流灵活性。提前再融资的主要优势之一是潜在的显著利息节省。当市政当局能够以较低的利率重新融资其债务时，节省的金额在债券的生命周期内可能是巨大的。这对于可能面临预算限制或需要将资金分配给教育、公共安全或基础设施发展的其他关键服务的城市和城镇来说尤为重要。然而，值得注意的是，提前再融资受到某些法规和限制的约束。例如，国税局对使用免税债券进行再融资有具体规定。这些规定旨在防止套利，即发行者可能从托管资金的利息与债券支付的利息之间的差额中获利。因此，市政当局必须仔细遵循这些规则，以确保合规，同时实现预期的财务结果。此外，提前再融资的时机至关重要。市政当局需要评估市场条件，并确定启动再融资过程的最佳时机。如果利率预计会上升，等待太久可能会抵消再融资的好处。相反，如果利率较低，迅速行动可以锁定节省并增强市政当局的财务健康。总之，提前再融资作为市政当局有效管理债务的宝贵工具。通过利用较低的利率和改善现金流，城市和城镇能够更好地服务于社区并投资于基本服务。然而，仔细考虑监管要求和市场条件对于成功实施这一策略至关重要。随着市政当局继续面临财务压力，理解和利用像提前再融资这样的技术将对保持财政稳定和促进增长变得越来越重要。