Call risk: Difference between revisions
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Revision as of 14:12, 23 October 2012
The risk to a lender/investor from the potential calling - for early redemption - of a callable bond. It gives the investor the unexpected problem of re-investing their money returned early. So if interest rates have fallen the investor will receive a lower than expected return, for the unexpired term of the original (callable) bond.
See also
- 101 call protection
- Call
- Call protection
- Callable bond
- Hard call protection
- Make whole clause
- Soft call protection
- Spens clause