Common use of Reinvestment risk Clause in Contracts

Reinvestment risk. If investors hold a callable bond, when the interest rate goes down, the issuer may redeem the bond before maturity. If this happens investors have to re-invest the proceeds, the yields on other bonds in the market will generally be less favorable.

Reinvestment risk. If investors Clients hold a callable bond, when the interest rate goes down, the issuer may redeem the bond before maturity. If this happens investors happens, Clients have to re-invest the proceeds, the yields on other bonds in the market will generally be less favorable.

Reinvestment risk. If investors hold the Client holds a callable bond, when the interest rate goes down, the issuer may redeem the bond before maturity. If this happens investors have and the Client has to re-invest the proceeds, the yields on other bonds in the market will generally be less favorablefavourable.

Reinvestment risk. If investors hold a callable bond, when the interest rate goes down, the issuer may redeem the bond before maturity. If this happens investors have to re-invest the proceeds, the yields on other bonds in the market will generally be less favorablefavourable.