Sentences with phrase «callable bonds often»

As a result, callable bonds often have a higher annual return to compensate for the risk that the bonds might be called early.

Not exact matches

Primarily this would occur when there is a drop in interest rates — issuers often redeem the callable bond and issue another one at the new, lower interest rate.

Callable bonds are more risky for investors than non-callable bonds because an investor whose bond has been called is often faced with reinvesting the money at a lower, less attractive rate.