Put Action

From Open Risk Manual

Definition

Put Action. The putting of some debt security back to its issuer by the holder

Note this is a holder action. There may be terms in the security giving the holder the ability to redeem early. If so, this is the event where that happens. Could apply to MTN as well as Bonds. We have defined MTN as a kind of Bond in this model. Review discussion: scope fo this: You could in theory put a share but no-one has come across this. Issuer may buy back shares at a given price but that's a different context - there's message for that. Makes an offer to repurchase shares. So therefore it is not possible in principle to have a call fo ra non debt instrument. In other circumstances e.g. compulsory acquisition in a takeover, is equivalent to this but it's a different term.

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This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.