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Callable Security

What is 'Callable Security'

A security with an embedded call provision that allows the issuer to repurchase or redeem the security by a specified date. Since the holder of a callable security is exposed to the risk of the security being repurchased, the callable security is generally less expensive than comparable securities that do not have a call provision.

Explaining 'Callable Security'

The conditions of the call provision are established at the time the security is issued. Callable securities are commonly found in the fixed-income markets and allow the issuer to protect itself from overpaying for debt.


Further Reading


Callable convertible debt under managerial entrenchment
www.sciencedirect.com [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

Callable bonds: A risk‐reducing signalling mechanismCallable bonds: A risk‐reducing signalling mechanism
onlinelibrary.wiley.com [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

A model for designing callable bonds and its solution using tabu searchA model for designing callable bonds and its solution using tabu search
www.sciencedirect.com [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

Are negative option prices possible? The callable US Treasury-Bond puzzleAre negative option prices possible? The callable US Treasury-Bond puzzle
www.jstor.org [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

Evaluation of callable bonds: Finite difference methods, stability and accuracyEvaluation of callable bonds: Finite difference methods, stability and accuracy
academic.oup.com [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

The choice between callable and noncallable bondsThe choice between callable and noncallable bonds
onlinelibrary.wiley.com [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

Savings bonds, retractable bonds and callable bondsSavings bonds, retractable bonds and callable bonds
www.sciencedirect.com [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

Callable bonds: A risk-reducing signalling mechanism-A replyCallable bonds: A risk-reducing signalling mechanism-A reply
www.jstor.org [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …

A simple approximation of the value of callable convertible preferred stockA simple approximation of the value of callable convertible preferred stock
www.jstor.org [PDF]
… While callable convertible debt is an effective financial instrument for an entrenched manager, it is not desirable … Journal of Financial Economics 3 (1976), pp … 1996 K. Jung, Y.-C. Kim, R. StulzTiming investment opportunities, managerial discretion, and the security issue decision …


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