Refunding Escrow Deposits

Refunding Escrow Deposits
Forward contract creating an escrow from investor’s funds to purchase a specified bond at an agreed yield on a predetermined future date.

The escrow funds are invested in safe investments like government securities and at maturity the funds are invested in the bond. Commonly known as REDs.

Random Finance Terms for the Letter S

  • Redeemable
  • Redemption
  • Redemption Charge
  • Redemption Cushion
  • Redemption Suspension
  • Reference Rate
  • Refundable
  • Refunded Bond
  • Refunding
  • Refunding Escrow Deposits