Put Provision

Dictionary Says

Definition of 'Put Provision'

A condition that allows a bondholder to resell a bond back to the issuer at a price - which is generally par - on certain stipulated dates prior to maturity. The put provision is an added degree of security for the bondholder, since it establishes a floor price for the bond. This mitigates the risk of a decline in the bond price in the event of adverse developments such as rising interest rates or a deterioration in the credit quality of the bond issuer.
Investopedia Says

Investopedia explains 'Put Provision'

Since a put provision gives the bondholder the right but not the obligation to sell or "put" the bond to the issuer, it is akin to the sale of a put option by the bond issuer to the bondholder. As a result, a bond with a put provision will generally be priced higher than a comparable bond without a put provision.
Search results for

'Put Provision'

  • What does it mean when a bond has a put option?

    http://www.investopedia.com/ask/answers/06/bondputoption.asp
    ... are weakening, which could lower its ability to pay off its debts, they can simply
    force the issuerer to repurchase their bond through the put provision. ...
  • Agency Bonds: Limited Risk And Higher Return

    http://www.investopedia.com/articles/bonds/07/agency_bonds.asp
    ... Also available are bonds carrying a death-put provision, in which the estate
    of a deceased bondholder may redeem the bond at par. ...
  • Analyzing A Bank's Financial Statements

    http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
    ... the flattening of the yield curve has likely caused a slow-down in the economy and
    put pressure on marginal borrowers. Arriving at the provision for loan ...
  • Tax-Efficient Wealth Transfer

    http://www.investopedia.com/articles/retirement/07/reduce-estate-tax.asp
    ... are doing everything possible to reduce their taxable estates before the provision
    takes effect ... been designed so that any assets or funds that are put into the ...
  • Cedar Fair-Apollo Deal Dead

    http://stocks.investopedia.com/stock-analysis/2010/Cedar-Fair-Apollo-Deal-Dead-FUN-DIS-WOLF-CCL-RCL0408.aspx
    ... For now, Cedar Fair will have to re-work its capital structure, meaning
    its debt, and they've put in place a poison pill provision. ...
  • An Introduction To Reverse Convertible Notes (RCNs)

    http://www.investopedia.com/articles/bonds/08/reverse-convertible-note.asp
    ... Call Provision - Some RCNs include a feature that could take your RCN from you just ...
    Because RCNs consist of two parts, a debt instrument and a put option, your ...
  • Why You Should Draft A Will

    http://www.investopedia.com/articles/pf/07/draft_will.asp
    ... may, by provision, place these assets in another vehicle known as a trust (upon
    your death) for the benefit of that individual. Stipulations can then be put in ...
  • Banking Stress Tests: Would Yours Pass?

    http://www.investopedia.com/articles/fundamental-analysis/09/banking-stress-tests.asp
    ... The fancy name for this is "pretax, pre-provision core earnings." Simply put, this
    is the bank's cash flow being generated from earning assets, or the ...
  • Cut Employee Stock Option Taxes With AMT Credit

    http://www.investopedia.com/articles/tax/09/refundable-AMT-credit.asp
    ... The provision is a way that Congress helps offset the taxes stockholders incurred
    for ... However, the IRS also put income limits in place to reduce the amount of ...
  • Why Bad Bonds Get Good Ratings

    http://www.investopedia.com/articles/bonds/09/bonds-credit-ratings.asp
    ... Put provisions are especially important if the interest rate environment changes
    significantly ... make sure you know if the bond has a "call provision" that allows ...

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