Callable


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Related to Callable: callable stock, callable CD

Callable

Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Bonds are usually called when interest rates fall so significantly that the issuer can save money by issuing new bonds at lower rates.

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.

Callable

A bond issue, all or part of which may be redeemed before maturity by the issuing corporation under specific conditions. The term also applies to preferred shares of stock, which may be redeemed by the issuing corporation.
References in periodicals archive ?
The new Callable Agencies product extends TradeWeb's leadership in online fixed-income trading with the following product innovations:
Fannie Mae and Freddie Mac also see the launch of TradeWeb's Callable Agencies product as significant market advancement for their debt.
Freddie Mac expects to conduct callable repurchase operations from time to time, using its Internet-based platform and will provide a two-business day advance notice of repurchase activity.
The objective was to select bonds that would provide a strong test of the agency theories of callable bonds.
125% syndicated callable note, due on November 7, 2013.
Thanks to its merits of simple operation and low investment cost, callable bull/bear contracts have been developing rapidly since their debut in Hong Kong in 2006.
The US callable bond market has experienced dramatic changes in the last two decades.
This lawsuit claims that the Defendants, prior to March 9, 2008, did not adequately disclose the risks associated with callable certificates of deposit ("Callable CDs") sold by brokers (including brokers affiliated with a bank or financial institution).
Martin Schoppmeyer said he bought two callable CDs from A.
The 'F1' rating on the callable CP notes will continue to be based on the support of both the City of Orlando, Florida (the City) and a liquidity facility in the form of the Second Amended and Restated Commercial Paper Purchase Agreement (CPPA) provided by JPMorgan Chase Bank, National Association (JPMorgan, currently rated 'A+/F1', Stable Outlook by Fitch).
Sections I and II contain background information on past research and on the callable Treasury bond market.
20, 2012, MICLA will be authorized to issue callable tax-exempt series A-2 and callable taxable series B-2 CP notes during a Call Exercise Period, which is a period commencing on the 35th day prior to the maturity date.