New bonds that are issued “further” to an existing issuance of bonds (parent bond), but as separate tranches. Eventually these tranches will be merged or ‘funged’ into existing bonds of the same issuer, with features and terms and conditions that are identical to the existing ones in all respects excluding the issue date and/ or issue price. The parent bond is interchanged into its fungible bond.

Fungible bonds trade immediately after an issue is announced.