Fixed Income
Puttable Bond
Definition
What is Puttable Bond?
A bond the holder may require the issuer to repurchase before maturityThe date when a debt investment's principal is scheduled to be repaid. on specified dates.
Example in practice
How This Looks in Practice
The investorA person or organisation that commits capital with the expectation of a financial return. exercises the put after the issuer's credit quality weakens.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.