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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
0%Never30 Jun 22
CARE
A+(CE)
RESET RATE REFER REMARKSSemi Annually30 Mar 34
ICRA
AA-
11.50%Semi Annually28 Sep 23
Unrated
10.50%Monthly28 May 26
INDIA
D
8.50%Semi Annually14 Apr 26
Unrated
13.50%Monthly28 Feb 23
Unrated
11%Monthly27 Jun 24
ICRA
BBB
RESET RATE REFER REMARKSas per Term Sheet02 Oct 47
INDIA
AAA
9.18%Quarterly31 Dec 28
Unrated
15%on Maturity25 May 41
Unrated
10.50%Monthly28 Sep 26
Unrated
13.70%on Maturity28 Feb 34
Unrated
18%Monthly08 Sep 20
ICRA
D
0%Never16 Jun 16
Unrated
RESET RATE ( REFER REMARK)Annually11 Oct 34
INDIA
AA
Variable CouponSemi Annually15 Nov 32
CRISIL
D
8.70%Annually11 Aug 24
Unrated
13.70%on Maturity15 Nov 34
Unrated
14%Annually17 Jun 26
Unrated
11.50%Annually06 May 28
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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