Make-Whole Call

简明释义

以支付溢价为成本的提前还款权利

英英释义

例句

1.During the financial meeting, the CFO discussed the implications of a Make-Whole Call for future cash flows.

在财务会议上，首席财务官讨论了全额赎回权对未来现金流的影响。

2.The Make-Whole Call provision in the bond agreement allows the issuer to buy back the bonds at a premium.

债券协议中的全额赎回权条款允许发行人在溢价下回购债券。

3.The firm is considering a Make-Whole Call to take advantage of lower interest rates.

该公司正在考虑进行全额赎回权以利用更低的利率。

4.The company decided to execute a Make-Whole Call to refinance its high-interest bonds.

公司决定执行一个全额赎回权来再融资其高利率债券。

5.Investors were pleased when they learned about the upcoming Make-Whole Call on their preferred stocks.

投资者在得知他们的优先股即将进行全额赎回权时感到高兴。

作文

In the world of finance, investors often encounter various terms that can be quite complex. One such term is Make-Whole Call, which refers to a specific type of provision in bond contracts. This provision allows the issuer of the bond to redeem it before its maturity date, while compensating the bondholders for the loss of future interest payments. Understanding the implications of a Make-Whole Call is essential for both investors and issuers alike, as it can significantly affect the valuation and attractiveness of a bond. When a company issues bonds, it typically commits to paying a fixed interest rate over a set period. However, if market conditions change or if the company’s financial situation improves, it may wish to refinance its debt at lower rates. This is where the Make-Whole Call comes into play. By allowing the company to buy back the bonds before maturity, the Make-Whole Call provides flexibility, but it also introduces risks for investors. From an investor's perspective, the Make-Whole Call means that they could miss out on future interest payments if the issuer decides to call the bonds early. To mitigate this risk, bonds with a Make-Whole Call provision usually offer higher yields compared to those without such a feature. Investors must weigh the potential benefits against the risks when considering bonds with a Make-Whole Call. Moreover, the calculation involved in a Make-Whole Call is quite intricate. The amount the issuer pays to redeem the bonds early is not simply the face value of the bonds; it includes a premium that reflects the present value of the remaining interest payments. This premium is designed to make the bondholders whole, hence the name Make-Whole Call. It ensures that investors receive a fair compensation for the early termination of their investment. In conclusion, the Make-Whole Call provision is a crucial aspect of bond investing that requires careful consideration. It provides issuers with the flexibility to manage their debt effectively while offering investors a way to potentially earn higher yields. However, the risks associated with early redemption cannot be overlooked. Therefore, both parties must fully understand the implications of a Make-Whole Call to make informed decisions in the ever-evolving landscape of finance.

在金融世界中，投资者经常会遇到各种复杂的术语。其中一个术语是Make-Whole Call，它指的是债券合同中的一种特定条款。该条款允许债券的发行人在到期日前赎回债券，同时补偿债券持有人未来利息支付的损失。理解Make-Whole Call的含义对于投资者和发行人来说都是至关重要的，因为它可能显著影响债券的估值和吸引力。当一家公司发行债券时，它通常承诺在一定时期内支付固定的利率。然而，如果市场条件发生变化，或者公司的财务状况改善，它可能希望以更低的利率再融资其债务。这就是Make-Whole Call发挥作用的地方。通过允许公司在到期之前回购债券，Make-Whole Call提供了灵活性，但它也给投资者带来了风险。从投资者的角度来看，Make-Whole Call意味着如果发行人决定提前赎回债券，他们可能会错过未来的利息支付。为了减轻这种风险，带有Make-Whole Call条款的债券通常提供比没有此类条款的债券更高的收益率。投资者在考虑带有Make-Whole Call的债券时，必须权衡潜在的好处与风险。此外，涉及Make-Whole Call的计算相当复杂。发行人提前赎回债券所支付的金额不仅仅是债券的面值；它还包括反映剩余利息支付现值的溢价。这个溢价旨在使债券持有人得到补偿，因此得名Make-Whole Call。它确保投资者因投资的提前终止而获得公平的补偿。总之，Make-Whole Call条款是债券投资中的一个关键方面，需要仔细考虑。它为发行人提供了有效管理债务的灵活性，同时为投资者提供了一种潜在赚取更高收益的方式。然而，与提前赎回相关的风险不能被忽视。因此，双方必须充分理解Make-Whole Call的含义，以便在不断变化的金融环境中做出明智的决策。