Call Premiums

These come into play once the period of call protection ends. For high yield bonds this is usually, the premium on the first call date is par plus 50% of the coupon, declining in a linear fashion thereafter each year. As an example a 9% bond due in 10 years with five years of call protection, would typically be callable at 104.5% of par upon the fifth year outstanding, then at 103%, 101.5% and par in the following years, representing a par-plus-50% coupon, 33%, 17% and par. Loans do not typically have call protection or a premium but if they do this is usually set at 1% for the first year after the call protection ends (usually 6-12months).

Investing in wiseAlpha Notes involves risks including potential illiquidity and loss of investment. Our Notes are not deposit based or capital protected and are not covered by the Financial Services Compensation Scheme.The interest rate on our products is not comparable to that of a bank savings account. See Risk Statement.

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