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 ...

Explore the concept of bullet loans and bonds, their differences from amortizing loans, and their impact on borrowers and issuers. Understand how these financial tools work.

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 ...

Discover how bond prices and yields interact and what influences these fluctuations. Explore key factors affecting bond values and their implications for investors.

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 ...

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 ...

For well over a decade, the institutional municipal market has been dominated by high 5% bonds callable at 100 in year 10. The premium market price corresponding to the artificially high coupon ...

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 ...