Accounting

Regulatory Control

January 28, 2022
Finance

Callable Fixed Rate Note

January 28, 2022

Share

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 callable fixed rate note.

Leave a Reply

Related Tags

All Topics in the Letter