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Redemption penalty overhang |
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Redemption penalty overhangThis 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 MatchesRedemption dateRedemption dateThe actual date on which repayment of a bond or loan stock takes place. Redemption dateRedemption dateThe date on which a bond matures or is redeemed. RedemptionRedemptionThe re-purchase of a security, such as a bond or preferred stock, by the issuing company at or before maturity. Right of redemptionRight of redemptionThe right to recover property that has been attached by paying off the debt . Overhanging redemption penaltyOverhanging redemption penaltyAn early redemption charge that lasts beyond the benefit period is referred to as an extended or overhanging redemption penalty. These should be avoided where possible. Further SuggestionsRedemption chargeRedemption fee Redemption redemption price Redemption Period Preferred equity redemption stock (PERC) gross redemption yield Redemption cushion Redemption statement redemption yield Serial redemption Redemption Redemption penalties right of redemption Extended redemption penalty Redemption redemption fees Mandatory redemption schedule Redemption price |
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