Not exact matches
New to the third annual list are risky payphone and ATM investments,
often sold by independent life insurance agents, and so - called «
callable» certificates of deposit sold to older Americans despite their 10 - to 20 - year -LSB-...]
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.
As a result,
callable bonds
often have a higher annual return to compensate for the risk that the bonds might be called early.
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.