Sentences with phrase «issues callable»

To take advantage of lower rates in the future, ABC issues callable bonds.

Some older 30 - year Treasuries may be callable five years before they mature, but the Treasury no longer issues any callable bonds.

For example, Company A issues callable bonds with an 8 % interest rate.

Not exact matches

A callable or redeemable bond is a bond that may be redeemed by the issuing company before the maturity date.

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.

A floater may be issued as either non-callable or callable.

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.

Also, many corporate bonds are callable, meaning that they can be called in by the issuing company and redeemed on a fixed date.

For instance, a callable municipal bond is issued with a 6 % yield.

Call Risk Appears Limited for Preferreds Both preferreds and high yield bonds share call risk, though preferreds tend to have more callable issues.

If a company issues a «Callable Bond», it means that it can be redeemed by the Issuer (company) before the bond's maturity.

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.

They are issued at a par value of $ 25 per share, pay a fixed dividend quarterly or twice a year, and rarely have a fixed life span but are almost always callable at $ 25 after five years.

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.

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.

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.

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.

Similar issues arise for callable bonds in the American municipal, corporate, and government agency sectors.

1) pays a fixed dividend rate of at least 6.5 %; 2) Become callable five years after IPO; 3) Pays dividends quarterly; 4) Be rated «investment grade» by Moody's Investors Service; 5) Be issued by a company that has a perfect track record of never having suspended the dividend payments on a preferred stock (and these are mostly decades old, multibillion dollar companies); 6) Have a «cumulative» dividend obligation; 7) Be issued by a U.S. company; 8) Not be convertible to common stock in the future; 9) Have easy (online) access to the prospectus at IPO; and 10) Have an initial share value (par) of $ 25.00.

Term used to describe callable securities issued by the FHLB with either fixed - or floating - rate structures.

High - yield bonds are typically issued with maturities of 10 years or less, and are callable after four to five years.

U.S. Treasury Securities issued today are not callable, so they will continue to accrue interest until the maturity date.

In the debt capital markets field, the team advised on the first issue by a South African insurer of callable bonds that qualified as secondary capital for the issuer.