Doomsday Call

Dictionary Says

Definition of 'Doomsday Call'


A call option that is added to a bond and allows the issuer to redeem the bond early. The doomsday call is also referred to as the Canada call because bonds issued by Canadian corporations often include them. When the call is exercised, the issuer pays back the principal and accrued interest before maturity.






Investopedia Says

Investopedia explains 'Doomsday Call'


Doomsday calls, when exercised, can reduce the yield of a bond because they shorten the term of the bond and, therefore, the overall interest paid. Nevertheless, the doomsday call provision ensures that the price paid for the bond creates a specific yield for the bondholder and the exercise of one reduces risk, since it pays the principal back early.

comments powered by Disqus
Hot Definitions
  1. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  2. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
Trading Center