callable

Thân thiện

The company issued callable bonds to raise capital.

Definition

1. Adjective:
   • Subject to a demand for payment before its due date: Describes a financial instrument, such as a bond or loan, where the issuer has the right, but not the obligation, to repay the principal amount to the investor before the scheduled maturity date.
   • Capable of being called or summoned: In a general computing or programming context, it can describe a piece of code (like a function or method) that is designed to be invoked or executed.

Usage Examples

• Adjective (Finance):
  • The company issued callable bonds to retain flexibility in its debt management.
  • Investors accept a lower yield on callable securities due to the prepayment risk.
• Adjective (Computing):
  • In Python, functions are first-class callable objects.
  • The program passes a callable reference to the event handler.

Advanced Usage

• "Callable at par": Refers to a bond that the issuer can redeem at its full face value before maturity.
  • The 2030 note is callable at par starting in 2025.
• "Callable capital": In banking or investment funds, this is capital that investors have committed to provide but is not yet paid in; it can be "called" when needed.
  • The venture capital firm has $50 million in callable commitments from its partners.

Variants and Related Words

• Call (verb): The action of demanding repayment or invoking a function.
  • The bank can call the loan if the borrower defaults.
• Callability (noun): The quality or feature of being callable.
  • The bond's callability is a key term for investors to review.

Synonyms

• Redeemable: Able to be repaid or cashed in, often before maturity (primarily financial context).
• Prepayable: Subject to payment before the due date (financial context).
• Invokable: Capable of being called into action or execution (computing context).

Related Phrases

• Call provision / call option: The specific clause in a contract that grants the right to call the security.
  • The call provision allows the issuer to refinance if interest rates fall.
• Call risk / prepayment risk: The risk to an investor that a callable security will be repaid early, potentially forcing reinvestment at lower rates.
  • Portfolio managers must account for call risk in their fixed-income strategies.

Notes

• In finance, the "call" right typically benefits the issuer, not the investor. Therefore, callable bonds usually offer a higher interest rate (coupon) than non-callable bonds to compensate investors for this risk.
• In programming, a "callable" is a fundamental concept; any object that implements the method (in Python) or a similar mechanism can be invoked like a function.

Học thuật

Adjective

1. subject to a demand for payment before due date
   • callable bonds