Sentences with word «callable»

"Callable" refers to an option or a financial security that gives the issuer the right to redeem or call it back before its agreed maturity date. In simple terms, it means that the issuer has the ability to buy back the security or option early. Full definition
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.
Some issuers offer higher initial rates on callable CDs.
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.
Issuers of callable bonds may choose to refinance by calling their existing bonds so they can lock in a lower interest rate.
She said you should make a list of your debts, order your debts from highest interest rates to lowest, make your minimum payments on all of your debts but pay extra on your highest interest rate callable debt.
If an investor has the view that rates may well be volatile in either direction over the near term but are likely to remain in a definable range over the next year, an investment in callable securities can significantly enhance returns.
The takeover premium may push the stock price above the threshold when the warrants become callable at a nominal consideration by the company.
Assuming you like the company's fundamentals and the convertible shares aren't callable for several years, should you buy the convertible or the common stock?
Similar issues arise for callable bonds in the American municipal, corporate, and government agency sectors.
For this reason, the rates on callable CDs are often higher than traditional CDs.
It is important to note that the price of callable preferred stock is affected by whether the call option is in the money, at the money or out of the money.
For example, Company A issues callable bonds with an 8 % interest rate.
However, in addition to fixed rate coupon and non callable agency bonds, agencies do structure their bond issues to meet different investor needs.
Like a fixed rate callable CD, it is difficult to project when a CD might be called.
c is a conversion factor equal to the price at which a bond with the same time to maturity as said bond or, if callable, same time to first call (as per Rule 18101.
Discount callables trade like bullets — non-callable bonds — to maturity and carry compression risk.
Usually, issuers only redeem callable bonds early when it is beneficial to them as a business.
Estimating the Term Structure of Yield Spreads from Callable Corporate Bond Price Data by Antje Berndt of Cornell University (402K PDF)-- 43 pages — December 16, 2004
These are also known as callable securities.
I just wanted to add that in my country (Italy) the emergency number is not callable from a cellphone without sim - card: Way too many people just used this to make false alarms
Premium callables trade at «yield to call» — meaning that the price of the bond is calculated with the assumption that the bond will be called — and carry extension risk.
This means that the market expects interest rates at the time the bond becomes callable will be such that the issuer will not exercise its option.
For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond.
HELOCs are also callable loans.
In addition, long - term municipal bonds are usually callable by the issuer starting in the 10th year.
Two yield calculations are generally evaluated when it comes to selecting callable bonds for a portfolio: yield to maturity and yield to call.
While callable CDs give you a higher rate than usual, no penalty CDs offer below - average rates to compensate for the increased flexibility you get with the option to withdraw.
In addition, corporate bonds are often callable before maturity, meaning an issuer can pay off its bonds early.
Call Risk Appears Limited for Preferreds Both preferreds and high yield bonds share call risk, though preferreds tend to have more callable issues.
When rates drop to 6 %, the company calls the bonds, pays each investor his principal and a small call premium, and then issues new callable bonds with a 6 % interest rate.
All are rated BBB or better and most are now callable.
The CDs are usually callable on each subsequent interest payment date.
The real danger is HELOCs are callable loans.
Bank of Montreal Covered Call Canadian High Dividend Callable Equity Income Principal At Risk Notes, Series 607 (CAD)(F - Class)
Bank of Montreal Covered Call Canadian High Dividend Callable Equity Income Principal At Risk Notes, Series 606 (CAD)
Gail's advice is to make an inventory of your debts, make minimum payments on all of your debts and devote all of your extra money to your high interest callable debts.
High - yield bonds are typically issued with maturities of 10 years or less, and are callable after four to five years.
The spread or difference in yield over comparable noncallable securities compensates callable investors for this «negative convexity.»
Grasso owns Callable Trigger contingent yield note linked to SPX, RTY, and MXEA.
But in the short run, there are already practical applications, such as 21 Inc.'s marketplace for callable APIs (application program interfaces) that charge bitcoin micropayments for their services.
Discover five things you must know before investing and why callable bond lives a double - life that contains so much risks.
Issues that are currently callable typically trade at or below the call price.
Currently, the bonds eligible for inclusion in the index include high yield bonds that are issued by companies domiciled in the U.S. and Canada, and that are: fixed rate (including callable bonds); have a maximum rating of Ba1 / BB + by both Moody's Investors Service, Inc. («Moody's») and Standard and Poor's Financial Services, LLC («S&P»); and are subject to minimum issue outstanding, minimum time to maturity and maximum time from issuance criteria.
Call dates are fixed at the time of the CD issue so that you will know the possible callable dates before you purchase your CD.
The company owns, manages and finances a portfolio of real estate related investments, including mortgage pass - through certificates, collateralized mortgage obligations, Agency callable debentures and other securities representing interests in or obligations backed by pools of mortgage loans issued or guaranteed by Freddie Mac, Fannie Mae and Ginnie Mae.
a b c d e f g h i j k l m n o p q r s t u v w x y z