Discover how negative convexity affects bond prices, key risks, and how to calculate it. Learn why mortgage and callable ...
A call provision allows bond issuers to repurchase their debt early. Explore how these provisions function in real estate financing and their potential benefits.
Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...
When companies and governments issue bonds, they do so with a specific maturity date attached to the bond. For example, a five-year corporate bond will pay interest for five years before it’s ...
A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...
The advance refunding of tax-exempt bonds with taxable bonds is the dominant activity in the municipal markets. This is the major driver of the increase in taxable volume. According to a recent report ...
Bond investors are used to studying features like yield, maturity and credit quality. But many municipal and corporate bonds throw a curve: a “call” feature that ends the income flow, adding a layer ...
In the vast, complex world of investment, bonds often get sidelined. Yet, they are one of the most critical tools for any investor. Unlike cash, money markets, and certificates of deposit (CDs), bonds ...
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What Are Callable Bonds and How Do They Work?
Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...
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