conditional call option


Definition
A type of protection on some high-yield bonds that obligates the issuer of the bond to substitute a high-yield bond for a non-callable bond of similar terms and maturity dates to the investor in the event that the original bond is called. Therefore, if a high-yield bond is called, the issuing company must substitute this with a similar non-callable bond that will mature at approximately the same time as the original bond.


Related Personal Finance Articles

Loading...

conditional call option in the news

Loading...


Enter your email address to get our free Term of the Day newsletter!

conditional call option is ...

... part of the Bonds subject.

Search volume for conditional call option

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z