Puttable Bond
/ˈpʊtəbl bɒnd/
Definitions
- (n.) A bond that includes a provision allowing the holder to force the issuer to repurchase the bond before maturity.
The investor exercised the put option on the puttable bond due to rising interest rates.
Forms
- puttable bond
- puttable bonds
Related terms
See also
Commentary
A puttable bond grants bondholders a risk mitigation feature, allowing them to redeem the bond early, which affects pricing and issuer liability.
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.