What is Funding Operations?

Legal Definition
1) The process a government uses to swap out floating stock or short-term bonds for long-term bonds. Because floating stock does not guarantee payout or a fixed rate of interest, swapping it for funded debt (long-term bonds that carry a fixed rate of interest) introduces more stability into the government's financing of its national debt. 2) The process a company uses to convert its capital funding from short-term to long-term debt instruments.
Legal Definition
Transferring to long-term, fixed-interest debt, like bonds from short-term or floating interest investment vehicles.