Bonds, Interest Rates & Exchange Rates
What is the early redemption right (put option) on mezzanine securities?
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The early redemption right is the investor's right to demand that the issuer redeem the bond early at agreed times before maturity, and it is commonly attached to mezzanine securities such as convertible bonds.
The exercise times are set in advance, for example 'exercisable at set intervals from 1 year after the issue date', and it can serve as a way to recover principal and interest early when the share price is below the conversion price and conversion offers no benefit. Whether the right had been exercised has even been at issue in an FSS dispute mediation case, so look at both the exercise times and the issuer's ability to repay.
This answer is general financial information as of 14.10.2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.