A bond that is issued for the sake of refinancing an existing bond issue before maturity. The proceeds from the crossover bond issue are typically held in escrow and crossover bonds are secured by such escrow of invested funds. However, the existing bond issue remains to be secured by its corresponding repayment stream. On a given date, the existing bond issue will be replaced by the crossover issue using the funds held in the escrow account and the crossover bonds become subject to a repayment plan based on the original repayment stream.
March 17, 2025
