Fixed Income InstrumentsInvestment-grade Bonds Convertible Debentures Specific Coupon rate Debentures Perpetual Bonds Convertible Bonds Inflation Risk
Call Risk
A crucial aspect of bond investing is understanding callable bonds and the potential risks involved. These bonds have the ability to be redeemed before their intended maturity date, which poses a risk for the bond buyer. This means that the bondholder may earn less than what they had anticipated from their investment, making it a crucial consideration when making investment decisions. Therefore, it is essential to thoroughly assess the callable feature before investing in bonds to minimize the risk factor.
Related terms
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