Why An Early Call Needn't Disturb Your Sleep

Many investors who depend on the double-digit interest from bonds they bought 5 to 10 years ago got a nasty shock recently when issuers called the bonds before maturity to refinance their debt at lower rates. Now, chastened yield-seekers know they should study the fine print in every bond prospectus for call provisions that can cut their income.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.