Sentences with phrase «rate callable»

So, we've seen in the past few years, and we kind of touched on it in the first segment that there has been this trend towards variable rate callable debt.

Like a fixed rate callable CD, it is difficult to project when a CD might be called.

Not exact matches

a program that offers fixed rate senior and subordinated, unsecured obligations from a variety of independent issuers on a weekly basis, with a range of maturities and structures available; maturities range from 9 months to 30 years for both callable and non-callable securities

While callable CDs give you a higher rate than usual, no penalty CDs offer below - average rates to compensate for the increased flexibility you get with the option to withdraw.

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.

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.

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

Callable: A callable CD is one that promises a higher - than - usual rate, but which can be canceled by the bank before the end of yoCallable: A callable CD is one that promises a higher - than - usual rate, but which can be canceled by the bank before the end of yocallable CD is one that promises a higher - than - usual rate, but which can be canceled by the bank before the end of your term.

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.

While callable CDs give you a higher rate than usual, no penalty CDs offer below - average rates to compensate for the increased flexibility you get with the option to withdraw.

All are rated BBB or better and most are now callable.

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

They must also have views on the likely range of rates over the investment period and the market's perception of future rate uncertainty at the horizon date for reasons explained in Risks of Investing in Callable Securities.

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

Premium callables may be used when the bullish investor believes that rates are unlikely to fall very far.

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.

Callable CDs pay interest to the depositor at the contractual rate of interest over the life of the CD, BUT they have a «call feature».

Step - Up CDs are callable CDs in which the interest rate increases over the life of the CD to higher rates of interest.

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.

What is a Callable, Step - Up or Bonus Rate CD?

Callable, Step - Up CDs are Certificates of Deposit whose interest rates increase over the life of the CD on a predetermined schedule.

One buying opportunity in preferreds that Cheng has taken advantage of is Brookfield Office Properties Inc. «s (series T) rate resets, which offer a current dividend yield of about 5.5 per cent and are callable in December 2018.

Doug Hoyes: So, you've got this list of all of my debts and I'm going to start with whatever the highest interest rate one is, that's callable.

Make a list of your debts, order them from highest to lowest, pay off the callable debts with the highest interest rates first, and keep working until you're done.

Doug Hoyes: So, an example of a callable debt with a high interest rate would be something like a credit card?

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

Get rid of the callable debt first because the bank can call that loan at any time which can ruin your credit or jack up the interest rate.

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.

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.»

Callable bonds also have a higher coupon rate than other bonds.

As opposed to the Callable CD, a Bump Up CD gives the depositor the chance to «bump up» or opt for a higher interest rate should there be an increase in CD rates within the lifetime of the CD.

Callable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors ovCallable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors ovcallable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors over time.

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

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.

Meanwhile, you're very happy with the higher rate that callable bonds customarily pay.

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

A characteristic of CMOs and other callable or prepayable securities that causes investors to have their principal returned sooner than expected in a declining interest rate environment, and later than expected in a rising interest rate environment.

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

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

Premium callables would generally be used when the bullish investor believes that rates are unlikely to fall very far.

If an investor has the view that rates may well be volatile in either direction over the near term but are likely to remain in a definable range over the next year, an investment in callable securities can significantly enhance returns.

Callable securities that are at the money — where interest rates are very close to the point where the option will be exercised — have the most sensitivity to changes in market rates and implied volatility.

They must also have views on the likely range of rates over the investment period and the market's perception of future rate uncertainty at the horizon date for reasons explained in Risks of Investing in Callable Securities above.

This means that the market expects interest rates at the time the bond becomes callable will be such that the issuer will not exercise its option.

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.

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.

In addition to interest rate risk, the value of the options embedded in callables is sensitive to changes in the slope of the yield curve.2 The value of the options is a function of forward rates, 3 which are dependent on the spot4 level of rates and spot yield spreads.5

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.