conditional call option


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.
Browse Definitions 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
conditional call conditional claim rate