Step-Down Puttable Security

Finance
Substitution Swap
December 28, 2022
Derivatives
Commodity Product Spread
December 28, 2022

A type of a step-down coupon security which gives the holder a put option at each step-down point over the life of the security. This put option allows the holder to put it back to the issuer at each of the step-down dates. If put, the security will be given back in return for its face value. As such, payment of step-down coupons will be ended.

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