E
   
   Early Redemption (Put) Option
   















 

E

Early Redemption (Put) Option

An embedded feature of some bonds with both fixed and floating rates that permits the holder to sell the bonds back to the issuer or to a third party at par or close to par in the event interest rates rise and/or the quality of the issuer's credit declines. Bonds with these options are usually called Put Bonds, Puttable Notes, or Puttable Bonds.

Glossary * E