Redemption penalty overhang

 

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Redemption penalty overhang

This is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place.



Redemption penalty overhang

Similar Matches

Redemption

Redemption

The re-purchase of a security, such as a bond or preferred stock, by the issuing company at or before maturity.


Redemption price

Redemption price

See: Call price


Redemption

Redemption

This is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.


Mandatory redemption schedule

Mandatory redemption schedule

Schedule according to which bond sinking fund payments must be made.


Redemption price

Redemption price

The price at which a bond or preferred stock can be redeemed by the issuer.


Further Suggestions

Extended redemption penalty
Redemption Period
redemption yield
Overhanging redemption penalty
Preferred equity redemption stock (PERC)
redemption date
Redemption date
Redemption charge
right of redemption
Redemption
Serial redemption
Redemption penalties
Redemption cushion
gross redemption yield
Redemption fee
redemption fees
Redemption statement
Right of redemption
Redemption


 
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