Sentences with phrase «on callable bonds»

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.

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.

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

Not exact matches

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.

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

This technique is especially useful for callable and extendible / retractable bonds, whose cash flows depend on future interest rates, or are said to be «path dependent.»

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.

I know intuitively that callable bonds have higher yields than a comparable bullet, but I'm having trouble seeing that on excel.

How about diminimis gains on discounted muni bonds and continuous callable bonds after a specific year despite the bonds call 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.