Callability

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Callability

Feature of a security that allows the issuer to redeem the security prior to maturity by calling it in, or forcing the holder to sell it back.

Callability

A provision in an indenture that allows a bond to be redeemed before maturity. Callability allows the bond to be called at the discretion of the issuer, within certain limits. When the bond is called, the bondholder receives the par value (or sometimes slightly more) and does not receive any more coupons. Callable bonds are issued to allow the issuers to hedge against interest rate risk. That is, if interest rates fall significantly, they can call the bond and issue a new bond at a lower interest rate, reducing their liabilities. However, to protect the bondholder, most callable bonds also include call protection, which prevents the bonds from being called for a certain period of time and thereby guarantees the current interest rate for that time.

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Callable Callable Bond			Callability was very common prior to the 1990s, and was used in an average of more than 75% of all debt issues. Corporate debt issuance and the historical level of interest rates by Barry, Christopher B.; Mann, Steven C.; Mihov, Vassil T.; Rodriguez, Mauricio / Financial Management The root of the difference between the callability status of the convertible debt in this model and Stein's model is that in the Stein model only equityholders benefit from conversion, through a reduction of financial distress costs upon conversion. The strategic use of convertible debt in "deep pocket" predatory games by Gottesman, Aron A. / American Economist A demand for cash reserves (R) is derived principally from the uncertain callability of the implied contract between deposit holders and banks. An Examination of Country Member Bank Cash Balances of the 1930s: A ... by Saxena, Atul K. / Southern Economic Journal			Calificacion de bonos Calificacion dividida Calificacion provisoria Call Call an Option Call bancario Call Date Call Feature Call Loan Call Loan Rate Call Market Call Money Rate call option Call Premium Call Price Call Protection call provision Call Ratio Backspread Call Report Call Risk Call Rule Call Spread Call Swaption Call Warrant call watch Callability Callable Callable Bond callable CD Callable Common Stock Callable Preferred Stock Called Away CAM Camara compensadora Cambiale Cambio Cambio brusco en la direccion del mercado Cambio de precio Cambist Cambrist CAMELS Rating System Campagna agricola Campagne agricole Campbell Harvey CAMPS Can't Find Canada Education Savings Grant Canada Premium Bond Canada Revenue Agency Canada Savings Bond Canadian Agencies			Call-Level Interface call-out call-out call-out charge call-outs Call-Recall System Call-sign Call-sign Call-to-Mobility Ratio Call-To-Repair call-up call-up papers call-ups Call-waiting Alerting Signal Call-with-current-continuation Call/cc Call/cc Calla Calla Calla Calla Calla aethiopica Calla aethiopica calla lilies calla lilies calla lily calla lily calla lily Calla palustris Calla palustris Callability callable callable Callable bond Callable bonds callable CD Callable Common Stock Callable Common Stocks Callable Convertible Instruments Callable Daily Range Accrual Notes Callable Debt Obligation Callable Preferred Stock Callable Preferred Stocks Callable Step-Up Note Callaghan Callaghan Callaghan of Cardiff, Leonard James Callaghan, Baron Callaghan Valley Local Organizing Committee Callaghan, (Leonard) James, Baron Callaghan of Cardiff Callaghan, (Leonard) James, Baron Callaghan of Cardiff Callaghan, Daniel Callaghan, James Callaghan, Baron Callaghan, Leonard James Callaghan, Morley Callaghan, Morley Edward Callahan Area Show Theatre Callahan Associates Holdings Belgium Callahan County

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