Business and Personal Finance Dictionary

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• OPEN MARKET SECURITIES (OMS)
  
  Debt securities which are traded in the bond secondary markets. Portfolios of open markets can be structured to meet escrow requirements in advance refunding structures. For standard advance refundings, the open market securities which are allowed are direct obligations of the U.S. government: Treasury bills, notes, bonds and STRIP (zero coupons), and STRIPs issued by the Resolution Trust Corporation (Refcorp STRIPs). In crossover refundings, higher yielding open markets, such as Agency securities, are used in refunding escrows; however, use of Agency securities does not constitute a legal defeasance.
  
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