Sentences with phrase «if callable»

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.
If a callable floater is called by the issuer prior to maturity, the investor may be unable to reinvest funds in another floater with comparable terms.

Not exact matches

For example, if the stock is callable at $ 100 and the shares are trading very close to that (say, at $ 99), the likelihood that the stock will be called soon is much higher than if the stock were trading at $ 89 (further away from the strike price).
If issued as callable, the call is at the option of the issuer, giving the issuer an opportunity to pay the principal to the holders and stop making payments.
YTM is also called Yield To Worst (YTW) if the bond is callable.
If a company issues a «Callable Bond», it means that it can be redeemed by the Issuer (company) before the bond's maturity.
It is important to know if there are any special features or conditions associated with a bond you are considering for investment because that may affect your decision - making and potential income (from interest if it is callable).
If the bond you choose is callable, you have taken the risk of having your principal returned to you before maturity.
So if Company XYZ's bonds are callable, and rates fall from 10 % to 3 %, Company XYZ will probably call the 10 % bonds and issue new bonds with a lower coupon.
Check to see if you are investing in a callable bond and consider what types of bonds you may want to think about investing in advance to offset any potential decrease in interest income if the bond is called.
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.
If a bond is callable, it means that GE could redeem the bond early, which in this case it can not.
A callable bond is worth less to an investor than a noncallable bond because the company issuing the bond has the power to redeem it and deprive the bondholder of the additional interest payments he'd be entitled to if the bond was held to maturity.
It only indicates that the owners are ignorant of the fact the pfd's are now callable: that they will lose (25.8 / 25.0 - 1 =) 3.2 % if called.
If the bond you're analyzing is callable, you should use the Yield to Call (YTC) calculator.
If the client is very keen on no risks, there are insurance products (they make plenty of money from insurance) or callable investments that you can propose.
For example, if the stock is callable at $ 100 and the shares are trading very close to that (say, at $ 99), the likelihood that the stock will be called soon is much higher than if the stock were trading at $ 89 (further away from the strike price).
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.
Yields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yields.
If implied volatility is higher, callable security prices will be depressed.
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