10 /PRNewswire/ -- Fannie Mae (Federal National Mortgage Association) (NYSE: FNM) today announced that it will launch the first global callable bond
ever and the first transaction to be executed under the company's new $20 billion Global Debt Facility.
The reason is that the set of profitable call opportunities for a noncallable bond repurchased at market price will, in general, be greater than those of a callable bond
repurchased at fixed call premiums.
Taken together, these results provide new insights about optimal call policy and complement previous research about the behavior of callable bond
Ahlstrom, a global high performance fiber-based materials company, issues a EUR 100 million senior unsecured callable bond
He said that ORPIC took out its deposit for the contract which was set aside as a form of callable bond
5bn to make the USD 2bn target for the year and USD 1bn to replace the callable bond
In light of the dramatic changes in the callable bond
market, we reexamine the determinants of callable bonds
In a world without inflation, default-free callable bond
yields would be readily available from GNMA ("Ginnie Mae") pass-through mortgage-backed securities (MBS).
The chart at the lower left takes a common callable bond
, the 30-year Government National Mortgage Association bond, and subtracts, as an estimate of inflation, the yield difference between a 10-year Treasury bond and a 10-year TIIS.
The following section will discuss how the value (and yield) of a callable bond
differs from a noncallable bond.
The yield on Emirates Bank's floating rate callable bond
due December 2016 has fallen less than the average yield on debt of the region's financial institutions.
On the day of the announcement (Day 0), callable bond
returns fall 0.