Variable-rate demand note

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Variable-rate demand note

A note that is payable on demand and bears interest tied to a money market rate.

Variable-Rate Demand Note

A debt security that a holder may require the issuer to redeem before maturity. When this occurs, the issuer must pay par to the holder, and the holder loses any future coupon payments that he/she might otherwise have been due. An advantage to a variable-rate demand note from the holder's standpoint is the fact that the holder may reinvest the par value in a new bond in a time of rising interest rates. This protects the holder from certain types of interest rate risk.

Variable-rate demand notes come in two main forms. The first allows the holder to demand redemption on any of several days throughout the life of the bond, while the second only allows this on one particular day. Variable rate demand notes are also known as variable rate demand obligations, option tender bonds, or put bonds. In Canada, the most common term is a retractable bond.
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EverBank plans to put bonds backed by USD308m of loans on the market according to a report by Fitch Ratings.
HCF Bank (Ba3/Withdrawn/BB-) redeemed put bonds of the 7th series in the volume of 2.
Management is weighing different options for its series 2008G put bonds.
The player then put Bonds in a headlock before the two were separated by Giants players and team personnel.
The bond was always a part of the program, but it was tough to get people to put bonds up if we didn't have a big receiver footprint," said Weiss.
Proceeds of the series AH bonds will be used to remarket UC's outstanding 2011 series AA-2 put bonds.
3 million are variable rate demand bonds supported by SBPAs, $281 million are put bonds supported by self-liquidity (of which $119.
145 million first tier revenue refunding put bonds, series 2012-B.
Additionally, concerns remain surrounding the near-term escalating debt service profile and refinancing of existing put bonds with the potential for higher interest costs.
The 'F1+' rating reflects the strength of Advocate's cash and investment position to pay the cost of a mandatory tender on the series 2011B, 2003A, 2003C, 2008A-1, 2008A-2, 2008A-3 and 2008C-3B put bonds.
However, MADS includes a $500 million principal payment due under UC's series 2011Y put bonds, which the university fully expects to remarket prior to the July 1, 2014 tender date.
Uncommitted funding includes variable-rate demand bonds, commercial paper, put bonds, and floating-rate notes.