yield to current call

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Yield to Current Call

The lowest possible yield on a callable bond. If a callable bond is called before maturity, the bondholder only earns interest on the time that has elapsed between purchasing the bond and its early redemption. This yield can be significantly less than what would have been earned had the bond been held until maturity. The yield to current call assumes that the bond is called on the first date permitted in the bond agreement. Determining the yield to current call is an important part of risk analysis in evaluating a callable bond. It is also called yield to worst. See also: Yield to call, yield to maturity.

yield to current call

The annual return from owning a bond assuming the earliest possible call.
References in periodicals archive ?
Let's take a look at the yield-to-worst for the Bloomberg Barclays US Credit Index, for example.
As of April 30, the index included 453 constituents, had an average yield-to-worst of 7.
The yield-to-worst on the Merrill Lynch High Yield Master II Index declined to 8.
Fitch believes that high yield market participants could expect to earn their coupon (the yield-to-worst on the Master II Index is presently about 7.
This new report allows portfolio managers to easily track exposure to high yield bonds by industry classification and provides the yield-to-worst and duration-to-worst measures typically used in this market.