Definition of «callable»

The term callable refers to something that can be called upon or requested. In finance, it is used to describe a type of bond that allows the issuer to repay the debt before its scheduled due date. This means that the issuer has the option to redeem the bonds at a specified price before they reach their maturity date. Callable bonds typically offer higher yields than non-callable ones, as the issuer is able to retire them early if interest rates fall significantly.

Phrases with «callable»

Sentences with «callable»

In reality, prices of callable bonds are unlikely to move much above the call price if lower interest rates make the bond likely to be called. (investinginbonds.com)
Some issuers offer higher initial rates on callable CDs. (studentloanhero.com)
They must also have views on the likely range of rates over the investment period and the market's perception of future rate uncertainty at the horizon date for reasons explained in Risks of Investing in Callable Securities above. (investinginbonds.com)
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