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Webster's New World Finance and Investment Dictionary » off-the-run
off-the-run
off-the-run definition - finance
Old
bond issues that have been replaced by a newer issue. When a new Treasury or
federal agency debt issue comes to market, the older issues become off-the-run.
As those issues move further away from their issue date, they become more
difficult to trade because they have less liquidity. Most investors actively
trade only on-the-run issues, which decreases liquidity by lessening interest
in the old, or off-the-run, issues.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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