Redeem Me If You Can: Call and Put Options Explained

Welcome to another charming corner of capital markets – the one where bonds don't just sit around waiting to mature like a bottle of fine claret. No, some of them come with handy little features like call and put options that give issuers and investors a bit of wiggle room (or heartburn, depending on the side you're on).

If you’ve ever looked at a bond term sheet and thought, “What fresh legal sorcery is this?”, you’re not alone. Call and put options may sound like something out of a romantic comedy, but in the world of English law-governed bonds, they’re anything but light entertainment.