Discover how negative convexity affects bond prices, key risks, and how to calculate it. Learn why mortgage and callable ...
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 ...
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 ...
A call provision allows bond issuers to repurchase their debt early. Explore how these provisions function in real estate financing and their potential benefits.
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Callable Bonds: Leading a Double Life
Normally, a bond is a very simple investment instrument. It pays interest until expiration and has a single, fixed life span. It is predictable, plain, and safe. On the other hand, the callable bond ...
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 ...
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 ...
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