Put Provision

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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'

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    ... are weakening, which could lower its ability to pay off its debts, they can simply
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    ... Also available are bonds carrying a death-put provision, in which the estate
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  • Analyzing A Bank's Financial Statements

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    ... 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

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    ... are doing everything possible to reduce their taxable estates before the provision
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  • Cedar Fair-Apollo Deal Dead

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    ... 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)

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    ... Call Provision - Some RCNs include a feature that could take your RCN from you just ...
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  • Why You Should Draft A Will

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    ... 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?

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    ... 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

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    ... 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

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    ... 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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