The only feature that they consistently set to boost option values is the call date, which the riskier firms tend to set at three or five years, compared to seven or ten years more commonly found for investment-grade callable bonds
By relying exclusively on callable bonds
, federal agencies, corporations, and municipalities are missing out on the benefit of today's record-low Treasury yields.
In the market, however, prices of callable bonds
often exceed the call prices.
The strategies may hold callable bonds
, which may increase interest rate risk exposure.
They demonstrate that the net tax benefits of issuing this debt exceed the net tax benefits of issuing callable bonds
with a fixed call premium.
EUR 500 million undated guaranteed junior subordinated fix-to-floating callable bonds
In Section III, we extend the model to callable bonds
and examine optimal call policies in a stochastic term structure environment.
Although much has been learned from existing tax based analyses of callable bonds
, the extant models suffer from both theoretical and practical deficiencies.
Jian Gao, vice chairman of the China Development Bank, has contributed to the introduction of new debt instruments in the interbank market, such as floating rate notes (FRNs), puttable bonds, callable bonds
, strip bonds, 30-year bonds, swaption-embedded bonds, and forward rate bonds.
EUR 500 million undated guaranteed subordinated fix-to-floating callable bonds
(guaranteed by Hannover Re)
As in 1997, charges will be applied to mortgage-backed securities, callable bonds
, and manufactured housing and home equity asset-backed securities.
Table excludes callable bonds
currently in default.