PT  - JOURNAL ARTICLE
AU  - Andrew J. Kalotay
AU  - Leslie A . Abreo
TI  - Putable/Callable/Reset Bonds
AID  - 10.3905/jod.1999.319132
DP  - 1999 May 31
TA  - The Journal of Derivatives
PG  - 88--93
VI  - 6
IP  - 4
4099  - https://pm-research.com/content/6/4/88.short
4100  - https://pm-research.com/content/6/4/88.full
AB  - A callable bond will be paid off before maturity if the issuer finds the interest rate environment favors that strategy. But a putable bond may experience the same fate, at the option of the bondholder. Combining both call and put features in a single bond creates enough contingencies that quite different-seeming instruments may actually be essentially the same. This article examines such a structure and shows both how it behaves and why the ability to take it apart and effectively sell off some of the components as stand-alone options can make it particularly attractive to an issuer.