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13#
发表于 2011-7-11 19:23
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deriv108 Wrote:
-------------------------------------------------------
> goodman2011 Wrote:
> --------------------------------------------------
> -----
> > the question is about a debt , I think as a
> > investor ,you need not consider this
>
>  . I'm totally...idot..thinking in opposite.
>
> The callable bond issuer holds the "call". To
> remove the call, sell it -- receiver swaption.
Deriv...I think you're confusing yourself....If you are buying a callable bond, you are correct, the issuer holds the call. This is A BAD THING for the investor (except for the higher promised yield of course). As the investor, you would want to BUY a call, not sell a call. You already implicitly sold a call when you bought the bond from the issuer.
Edit:
I take that back...in the case where you're an issuer and you wanted to remove your call option for some reason (in order to pay a lower yield) you're right, the issuer would sell a call.
Edited 1 time(s). Last edit at Sunday, May 15, 2011 at 08:19PM by abushey31. |
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