A call provision allows bond issuers to repurchase their debt early. Explore how these provisions function in real estate financing and their potential benefits.
Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...
When companies and governments issue bonds, they do so with a specific maturity date attached to the bond. For example, a five-year corporate bond will pay interest for five years before it’s ...
A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...
Bond investors are used to studying features like yield, maturity and credit quality. But many municipal and corporate bonds throw a curve: a “call” feature that ends the income flow, adding a layer ...
In the vast, complex world of investment, bonds often get sidelined. Yet, they are one of the most critical tools for any investor. Unlike cash, money markets, and certificates of deposit (CDs), bonds ...
The advance refunding of tax-exempt bonds with taxable bonds is the dominant activity in the municipal markets. This is the major driver of the increase in taxable volume. According to a recent report ...
Many investment options are available to investors using bonds in modern investing. Bonds have emerged as a popular choice, with a staggering 90% of flows into mutual funds and Exchange-Traded Funds ...
Before we can discuss bonds in depth, it is important that we establish a common understanding of what bonds are and how they work. As a starting point, a bond is a contractual obligation to make a ...
Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...