Escrowed To Maturity
The condition of a bond that has been repaid in advance by means of an escrow account, which holds the funds needed to pay the periodic coupon payments and the principal. Investopedia Says:
The escrowed funds set aside for a company's debt obligations are usually invested in short-term debt securities - usually low-risk government bills - in order to protect the funds from inflationary depreciation. Related Terms:
Credit Rating
Default Premium
Default Risk
Escrow
Sinking Fund
Super Sinker |