Canary Call
A step-up bond that cannot be called after completing its first-step period. The issuer of the bond reserves the option to call back the bond until the first step is reached. A canary call may only be exercised on predetermined dates. Investopedia Says:
The canary call is similar to a Bermuda option, as it must be called on specific dates. If the issuer of the bond chooses not to call before the canary call expires, the bond will remain a standard step-up bond, where the coupon rate will increase with each step-up period. Related Terms:
Bermuda Option
Call Option
Callable Bond
Coupon
Exercise
Step-Up Bond |