The information provided are for general consumption only. Do not construe this as an offer/advice/research to buy/sell any securities

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Callable Bonds

Callable bonds have an embedded call option. A call option gives the bond issuer a right to call the bond back, i.e., return the principal and stop interest payments to bond holders at specific times or when certain conditions are met. This means bond holders may have to sell callable bond against their wish. This makes callable bonds an attractive proposition to bond issuers since they can re-issue bonds at a lower interest rate in the future by exercising their call option.

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Showing list of 2,637 bonds

Bond name

Rating

Coupon Rate

Payment Freq

Maturity Date

Unrated
12.50%Annually02 Mar 30
Unrated
18%on Maturity10 Feb 21
Unrated
10.50%Semi Annually30 Apr 22
Acuite
BBB
14%Monthly31 Jan 23
INDIA
D
8.50%Semi Annually14 Apr 26
CARE
A+(CE)
RESET RATE REFER REMARKSMonthly30 Mar 34
Acuite
A
10%Annually31 Dec 99
Unrated
6%Annually13 Dec 24
Unrated
16%Monthly15 Jun 21
Unrated
9.50%Semi Annually04 Dec 37
Unrated
11.25%Monthly30 Mar 26
CRISIL
AA+
7.75%Annually31 Dec 99
CARE
A
10%Annually21 Apr 25
INDIA
D
8.75%Semi Annually14 Apr 25
Unrated
11.50%Annually06 May 28
INDIA
AA+
9.15%Annually31 Dec 99
CARE
BB
15.75%on Maturity25 Mar 24
INDIA
WITHDRAWN
9.50%Annually31 Dec 99
Unrated
RESTE RATE( REFER REMARK)Semi Annually25 Jul 37
Unrated
18%Quarterly11 Feb 19
1-20 out of 2,637

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Still got questions? We’re here to help.

A Callable Bond is a type of bond that grants the issuer the right to redeem or pay back the bond before its scheduled maturity date. In other words, it's a bond that can be called back by the issuer, providing them flexibility to settle the debt early. This option is often exercised when the issuer sees an advantage, such as taking advantage of lower prevailing interest rates in the market.

Callable bonds might not be the best choice for investors. If the issuer decides to redeem the bond early, investors receive the face value and the coupon payments made until that point. However, they miss out on future expected coupon payments, making it less appealing to investors. It's worth noting that the call option in callable bonds is available only during specific periods or when certain conditions have been met.

The key difference is who benefits from the embedded call/put option and the yields they offer as a result. Puttable bonds offer slightly lower interest rates compared to regular bonds from the same issuer. This is because they benefit bondholders by allowing them to sell the bonds back before maturity, ensuring flexibility. In contrast, callable bonds provide slightly higher interest rates as they favor issuers; issuers can redeem these bonds if interest rates decrease, saving costs. Investors choose based on their preferences and financial strategies.

Call protection is a feature in callable bonds that prevents issuers from prematurely redeeming the bonds for a specified period. For instance, if a bond has a call protection period of 5 years, it means the issuer cannot buy back the bonds before the completion of 5 years from the date of issue. This clause helps safeguard the investors.

People

Invest in safer portfolio without compromising returns.

Dezerv Debt PMS strategy designed by our investment experts

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