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 ...

Add Yahoo as a preferred source to see more of our stories on Google. Bond investors are used to studying features like yield, maturity and credit quality. But many municipal and corporate bonds throw ...

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date. The call could happen at the bond's face value, or the ...

When thinking of interest rates in the taxable world, practitioners look at bellwether indicators such as the 10-year U.S. Treasury yield, and more broadly at the Treasury yield curve — a ...

Prepayment risk refers to the chance that a borrower may repay the principal of a fixed-income security early, reducing returns for investors. Learn how it affects investments.

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 ...

What Is a Call Provision? A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. Call ...

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 ...

Most seasoned bond investors are used to staying on top of their callable bonds so there are no surprises. Now, with Chairman Bernanke’s open-end, zero percent interest rate policy, we are ...

Callable MTNs benefit in particular because vanilla public sector benchmarks offer so little pick-up over US Treasuries. The African Development Bank priced a $2bn five year benchmark this weke at ...

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 ...