An embedded feature that is added to specific types of debt instruments or hybrid instruments that carry fixed and floating rates or only floating rates, allowing the holder to sell the instrument back to the  issuer or to a third party at par or near par in the event interest rates increase and/ or the credit quality of the issuer gets impaired.

An early redemption feature is typically found in bonds or notes with the right of early redemption in the hands of a holder (put bonds, puttable bonds, put notes, puttable notes, etc.)

This feature is also known as an early redemption option.