Canary Call

What is ‘Canary Call’

A step-up bond that cannot be called after completing its first-step period. The issuer of the bond reserves the option to call back the bond until the first step is reached. A canary call may only be exercised on predetermined dates.

Explaining ‘Canary Call’

The canary call is similar to a Bermuda option, as it must be called on specific dates. If the issuer of the bond chooses not to call before the canary call expires, the bond will remain a standard step-up bond, where the coupon rate will increase with each step-up period.

Further Reading

  • Saving the Canaries: Protecting Consumer Borrowers to Prevent Systemic Risk – [PDF]
  • Canary in the coal mine: What Carillion's collapse reveals about construction's productivity conundrum – [PDF]
  • The Canary Wharf debacle: from 'TINA'—there is no alternative—to 'THEMBA'—there must be an alternative – [PDF]
  • Old wine region, new concept and sustainable development: winery entrepreneurs' perceived benefits from wine tourism on Spain's Canary Islands – [PDF]
  • A Semi‐Explicit Approach to Canary Swaptions in HJM One‐Factor Model – [PDF]
  • An analysis of supply-side relationships in small island destinations: the role of tour operators, travel agencies and tourism transport in the Canary islands – [PDF]
  • The US Federal Financial Crisis Will Limit the Sale of Life Insurance Due to the Unintended Consequences of Low Economic Growth – [PDF]