Put, Retractable, and Extendible Bonds

Putable, retractable, extendible, and adjustable putable bond terms.

Put, retractable, and extendible bonds include features that can shorten, extend, or otherwise change repayment timing after issuance.

Use this branch when holder rights, issuer rights, or extension mechanics affect expected maturity, reinvestment risk, credit exposure, duration, or liquidity.

Key Terms in This Branch

TermWhat it clarifies
Putable BondA bond the holder may be able to sell back under stated conditions.
Put FeatureContract language that creates a holder put right.
Extendible Bond IssueA bond issue whose maturity or terms may extend under stated conditions.
Adjustable Long-Term Putable SecurityA putable structure with adjustable long-term features.

Common Mistakes

  • Assuming the stated maturity is the expected maturity.
  • Ignoring notice requirements, exercise windows, and put price.
  • Treating put protection as equivalent to credit protection.
  • Comparing extendible structures without modeling the extension scenario.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Putable Bond

A putable bond gives the holder a contractual right to require early repurchase at specified dates and prices.

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