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Old bond issues that have been replaced by a newer issue.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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