Callable Bond
/ˈkɔːləbəl bɒnd/
Definitions
- (n.) A bond that can be redeemed by the issuer before its maturity date at a specified call price.
The company issued a callable bond allowing it to refinance debt if interest rates dropped.
Forms
- callable bond
- callable bonds
Related terms
See also
Commentary
Callable bonds give the issuer flexibility but introduce reinvestment risk for investors, important to specify call provisions clearly in agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.