Paydown
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Bonds: refunding by a company of an outstanding bond issue through a smaller new bond issue, usually to cut interest costs. For instance, a company that issued $100 million of 12% bonds a few years ago will pay down (refund) that debt with a new $80 million issue with an 8% yield. The amount of the net deduction is called the paydown.
Lending: repayment of principal short of full payment.
See also on account.
| Payback Period, Pay-To-Play | |
| Payee, Payer |
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A payment made towards an outstanding loan balance.
Investopedia Says:
Every time you make a mortgage payment you are "paying down" your loan.
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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