Sentences with phrase «as callable securities»

These are also known as callable securities.

Not exact matches

Option free bonds have positive convexity; bonds with embedded options, such as callable bonds and mortgage - backed securities, have negative convexity, meaning the graph of the relationship between their price and yield is convex rather than concave.

With a callable security, the investor's compensation for selling the option is reflected in a higher yield and lower price as compared to a similar bullet security with the same maturity.

The embedded option in a 10nc3 European callable is the same as a 3 - year option on a 7 - year security.

Many investors use callable securities within a total return strategy — with a focus on capital gains as well as income — as opposed to a buy and hold strategy focused on income and preservation of principal.