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Glite Dictionary
💵 Can be redeemed early 💻 Can be called
callable

callable

1 7.9
Able to be bought back by the company that sold it before the end date, usually at a fixed price
  • adjective
  • /ˈkæləbəl/
  • Specialized
translation icon : rescatable
  • I have tons of callable bonds.
  • callable bond
  • callable CDs

Examples

  • There is an odd feature to BABs; they become callable if sequestration takes place.

    Blog text (21)

  • I do not want to sell as I do not know what to sell, as not all callable bonds get called.

    Blog text (27)

  • The 11% of November 2009-14 security was the last callable bond issued by the US Treasury.

    Academic text (2017)

  • The first event was the elimination of the callable feature of T-bonds after 1985, which caused a maturity gap in the delivery basket and triggered a notable episode 10 years later.

    Academic text (2017)

  • Many investors prefer bonds that are not callable because they want guaranteed returns until maturity.

  • The bank issued a callable bond, allowing it to repay the investors early if interest rates drop.

  • A callable bond gives the issuer the flexibility to redeem it before the maturity date if needed.

Synonyms

redeemable
vscallable
1 4.6

You can exchange it for money or goods

is restricted to issuer buying back a bond early before maturity
recallable
vscallable
5.1

Something that can be taken back, for example a product or an official removed by vote

is limited to issuer redeeming debt early rather than general withdrawal

How Callable

callable
  • Specialized
1 7.9
noncallable
  • Specialized
7.8

Surface Forms

callable positive

Morphology

callable = call (semi-transparent) = call + able

Formally 'call' + '-able' is regular, but the financial sense of 'call' (to redeem a bond) is specialized and may not be known to an average B1 learner.

Etymology

Callable comes from the simple word call meaning 'to call' or 'to call back', and the ending -able meaning 'able'. In finance, a 'call' is when the issuer can 'call back' a bond, so a callable bond is one the issuer can pay back before it ends.