A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...

The advance refunding of tax-exempt bonds with taxable bonds is the dominant activity in the municipal markets. This is the major driver of the increase in taxable volume. According to a recent report ...

Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond ...

When companies and governments issue bonds, they do so with a specific maturity date attached to the bond. For example, a five-year corporate bond will pay interest for five years before it’s ...

Learn how call protection in bonds prevents early buybacks by issuers, safeguarding your investment for a defined term with examples and key insights.

Although discounting has a critical role in funding and refunding decisions, it does not receive the attention it deserves. For example, to analyze a refunding proposal, we need to determine the cost ...