callable

USAGE SUMMARY

The word "callable" is correct and usable in written English.
You can use it to describe something that can be summoned by phone or some other form of communication. For example, "The search and rescue team is on standby and callable at any time of the day."

✓ Grammatically correct

News & Media

Encyclopedias

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

31 human-written examples

The bonds are callable, to reflect the prepayment risk of the underlying mortgages.In this section The global gusher The three Scrooges The Rip van Winkle of risk Sweet success A Danish model in Aztec dress Shifting sands ReprintsDenmark's approach allows mortgage-backed securities to be standardised into large pools, which makes them more liquid and attracts investors.

The Economist

The African members of the African Development Bank want to triple its capital to $99 billion 944% of which would be callable).

The Economist

The interest paid on them is the average market yield of all outstanding government debt that is callable in four years or more.

The Economist

And beyond, there is still "callable capital": the $178 billion or so that the World Bank's shareholder governments have promised to supply if necessary.

The Economist

What about callable, convertible and floating-rate debt?

The Economist

Catastrophe bonds linked to earthquake and storm risk have been sold to investors, and so has contingent capital, in the form of callable equity.

The Economist

If a bond gets close to the callable price, it is unlikely to rise much further: who would bid 110 cents for a bond that can be redeemed at 104? On the other hand, if the company hits hard times (and high-yield issuers are by definition more risky), the bond could fall quite sharply in price.

The Economist

For example, Kathryn Shih, head of wealth management for the Asia-Pacific region at UBS, says that three-year callable step-up bonds and capital-protected equity funds are currently in vogue.

The Economist

The shareholders of the European Bank for Reconstruction and Development (EBRD) have reached a general consensus on augmenting its €20 billion ($27 billion) capital base by 50%, including €9 billion in callable capital (which countries commit but do not immediately pay)*.

The Economist

The dominance of callable capital in the other MDBs' proposals also reflects the unfriendly climate for fund-raising.All the banks are keen to highlight improved efficiency.

The Economist

The great majority of bonds are callable, meaning that the issuer can redeem them at his option, upon appropriate notice, well before maturity.

Encyclopedia Britannica

Expert writing Tips

Best practice

When discussing financial instruments, use "callable" to clearly indicate that the issuer has the right to redeem the instrument before its maturity date. For example, a "callable bond" gives the issuer flexibility in managing debt.

Common error

Avoid using "callable" interchangeably with "convertible". "Callable" means the issuer can redeem the bond, while "convertible" means the holder can convert it into equity. Understand the distinct rights and obligations associated with each term.

Linguistic Context

The primary grammatical function of "callable" is as an adjective describing a financial instrument or capital. It modifies nouns like "bond", "debt", or "capital" to indicate the possibility of early redemption by the issuer, as evidenced by Ludwig.

Expression frequency: Common

Frequent in

News & Media

60%

Formal & Business

20%

Encyclopedias

10%

Less common in

Science

3%

Wiki

3%

Social Media

4%

Ludwig's WRAP-UP

The term "callable" is an adjective predominantly used in financial and legal contexts to describe instruments that can be redeemed by the issuer before their maturity date. Ludwig AI confirms its grammatical correctness and highlights its frequent appearance in news and formal business communications. Understanding the nuances of "callable" instruments, like bonds or capital, is crucial for making informed financial decisions. Related terms include "redeemable" and "retractable", each offering slightly different connotations. When using "callable", ensure clarity to avoid confusion with terms like "convertible", which implies a different set of rights for the holder.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Subject to redemption

Formally states that something is under the condition of being able to be redeemed.

Redeemable

Focuses specifically on the financial aspect of being able to be bought back or paid off.

Retractable

Highlights the ability to be withdrawn or taken back, often by the issuer.

May be redeemed

Emphasizes the option for redemption existing, but not necessarily being exercised.

Subject to recall

Indicates a possibility of being officially ordered to return.

On demand

Highlights availability or readiness for immediate action or access.

Available upon request

Stresses the accessibility of something when formally asked for.

Can be invoked

Focuses on the potential for something (like a clause) to be put into effect.

Liable to be called

Suggests a stronger likelihood or obligation of being summoned or requested.

Reclaimable

Highlights the ability to recover something that has been lost or taken.

FAQs

How is "callable" used in finance?

In finance, "callable" describes a security, like a bond, that the issuer has the right to redeem before its maturity date. This is often used when interest rates decline, allowing the issuer to refinance at a lower rate.

What is a "callable" bond?

A "callable" bond allows the issuer to redeem it before its maturity date, typically if interest rates fall. This benefits the issuer, but it may force the investor to reinvest at a lower rate.

How does a "callable" bond benefit the issuer?

A "callable" bond benefits the issuer by allowing them to refinance their debt at a lower interest rate if market rates decline. They can "redeem" the existing bond and issue new ones at the current, lower rate.

What are the risks for investors in "callable" bonds?

Investors in "callable" bonds face the risk of having their bonds "redeemed" early, especially when interest rates fall. This can force them to reinvest their money at potentially lower rates, reducing their overall return.