Sentences with phrase «more callable»

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

Not exact matches

Looking more closely at this second risk, callable securities suffer from a unique disadvantage.

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.

Discount callables are a better choice when the investor believes volatility will be low but prefers more protection in an environment of rising interest rates.

Most preferred shares are also callable, meaning the issuer can redeem the shares at any time, so they provide investors with more options than common shares.

stocks that pay a fixed dividend; have dividend and asset preference over common stocks, but behind debt in the case of bankruptcy; generally does not come with voting rights; either perpetual (have no maturity) or maturities of 30 years or more; can be callable

(Read more on callable bonds in «Callable Bonds: Leading a Double Life.callable bonds in «Callable Bonds: Leading a Double Life.Callable Bonds: Leading a Double Life.»)

Discount callables would generally be chosen when the investor believes volatility will be low but prefers more protection in an environment of rising interest rates.