A combination of factors is said to have driven demand for zero coupon callables — the euro swap curve is much steeper, ...

Investors must carefully consider the trade-offs, as falling interest rates could lead to reinvestment at a lower yield and make selling on the secondary market difficult.

Callable CDs, like traditional ones, are deposit accounts that offer a fixed interest rate over a predetermined period, typically ranging from several months to a few years. Once you open a ...

A callable bond is essentially a bond with an embedded call option attached to it. Similar to its options contract cousin, this bond option gives the issuer the right—but not the obligation—to ...

Callable CDs should state a noncallable period, or the initial time when the CD cannot be called. For example, a five-year CD may have a one-year call-protection period.

A callable CD is a type of savings product offered by banks and brokerage firms. Unlike its traditional counterpart, a callable CD can be “called” or redeemed by the issuer prior to the ...

Callable CDs aren't a good option for people who want predictable growth for their savings. "The traditional one is going to be a better option for you because you're set and locked in," says Plot.

The callable feature can only be enacted by the issuer. In other words, if you invest money in a callable CD, you are unable to access the funds early without incurring an early withdrawal penalty.

Callable CDs can offer higher returns but come with unique risks. Discover how callable CDs can impact your investment portfolio — and if they’re right for you.

Most callable bonds are municipal, meaning they are issued by city, state, or county governments, often to finance public works projects. Corporations may also issue callable bonds, although this ...

A callable CD by definition gives an advantage to the issuer. If market rates fall, the bank issuing the CD can call it in and relieve its obligation to pay the higher interest rate.