Sentences with phrase «of callable bonds»

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.

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.

Issuers of callable bonds may choose to refinance by calling their existing bonds so they can lock in a lower interest rate.

Declining interest rates may accelerate the redemption of a callable bond, causing an investor's principal to be returned sooner than expected.

In cases of a callable bond, it may be the call date.

Not exact matches

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.

Callable and puttable The issuer of a callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of paCallable and puttable The issuer of a callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of pacallable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of par value.

provision of a bond that makes it non ‐ callable or not subject to a scheduled call, even though other early redemption provisions may exist as specified in the prospectus or official statement

Callable bonds (also called redeemable bonds) can be redeemed by the issuer earlier than the maturity date, usually at the choice of the issuer.

A callable bond always bears some probability of being called before the maturity date.

Callable bonds are able to be purchased back by the company before they mature, potentially exposing investors to the risk of being forced to sell a good investment.

If the bond you choose is callable, you have taken the risk of having your principal returned to you before maturity.

Pricing Callable Bonds with Stochastic Interest Rate and Stochastic Default Risk: A 3D Finite Difference Model by David Wang of Hsuan Chuang University (62K PDF)-- 10 pages — February 2005

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

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.

Option free bonds have positive convexity; bonds with embedded options, such as callable bonds and mortgage - backed securities, have negative convexity, meaning the graph of the relationship between their price and yield is convex rather than concave.

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.

A callable bond with a call price based on the greater of (a) par or (b) the price based on the yield of an equivalent - term Government of Canada bond plus a specified yield spread.

Annuities Auction Rate Securities Business Development Companies Callable Security Lotteries at Baird Certificate of Deposit Disclosure Closed End Funds and UITs Exchange Traded Products Fixed - Income Securities Featuring a Survivor's Option (or «Death Put») Foreign Transaction Taxes Fund of Hedge Funds Hedge Funds Investing in Bonds Investment Managers» Placement of Client Trade Orders and Their «Trade Away» Practices IPOs Leveraged and Inverse Funds Managed Futures MLPs MLPs - The Taxation of Master Limited Partnerships FAQs Municipal Bonds Mutual Funds Disclosure Non-Exchange Traded Equity Securities Non-Rated, Split - Rated, and Below Investment Grade Securities Private Equity Funds REITs Rollover IRAs Securities in the Lowest Investment Grade Category Structured Products Variable Rate Demand Notes

A goal of a properly structured laddered bond portfolio should be to buy primarily non-callable bonds, or bonds that are only callable within a few years of maturity, as opposed to having 10, 15 or 20 years between the call date and the maturity of the bond.

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

Callable bonds are obviously favorable to the municipality and detrimental to investors in periods of falling interest rates.

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.

For coupons, which are usually for a stated percentage of the face value of the instrument, the daycount convention does not matter unless the coupon is paid late or the bond is a callable bond that is called in between two coupon payments.

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

A callable municipal, corporate, federal agency or government security gives the issuer of the bond the right to redeem it at predetermined prices at specified times prior to maturity.

Prices on callable bonds depend on the market's expectation of interest rates at the time the call feature on a bond becomes active in relation to the coupon rate on the callable bond.

The truth of the bond portfolio they purchased is that none of the bonds are «secured,» and the majority of them are callable at a lower amount than the purchase price.

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.