Finance

Fixed Rate Callable Note

January 28, 2022
Risk Management

Distance To Default

January 28, 2022

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A callable note that provides a fixed interest rate for its entire term. These notes allow investors to obtain higher yields versus standard notes. Issuers have the right to call (i.e., redeem) the notes before the end of their terms. However, their holders would receive, in exchange, coupon payments that are potentially higher than non-structured (vanilla) notes of similar basic features and credit quality.

It is also known as a fixed rate callable note.

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