Escrowed To Maturity refers to Bonds that have been refunded and a portfolio of securities, usually treasuries, have been set aside to pay of the bonds at maturity. Generally, all prior optional calls have been eliminated, or deceased. Because of the U.S. Treasury backing, Escrowed To Maturity bonds are considered the safest municipal bonds available and trade on the market as rich triple-A.
Also See: Bond Ratings
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