Escrowed To Maturity


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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • escrowed to maturity — ( ETM) Holding of the proceeds from a new bond issue to pay off an existing bond issue at its maturity date. Bloomberg Financial Dictionary …   Financial and business terms

  • ETM — ( escrowed to maturity) Holding of the proceeds from a new bond issue to pay off an existing bond issue at its maturity date. Bloomberg Financial Dictionary …   Financial and business terms

  • Net capital rule — The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ( SEC ) in 1975 to regulate directly the ability of broker dealers to meet their financial obligations to customers and other creditors.[1] Broker… …   Wikipedia


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