Remarketing
A formal re-underwriting of a bond for which the
form or structure is being changed. Most commonly used in connection with
changing variable rate to fixed-rate financings ? typically because ?the
construction phase is over"; or rates are at a level the issuer feels
comfortable with for the long term; or because of indenture requirements
(probably relating to arbitrage).
Remarks:
Bond funds including mutual funds (open-end and closed-end, actively managed
and indexed), exchange-traded funds and unit investment trusts offer a
convenient and affordable way to invest in a diversified portfolio of bonds,
but a bond fund investment can differ from a bond investment in ways that
are important to understand. |
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