doubling option

doubling option definition - business

doubling option

A provision in some indentures that allows the borrower, at its option, to retire twice as many bonds as stipulated under a sinking fund requirement. The additional retirements take place at or near par, so that the option is used during periods of low interest rates and is to the disadvantage of investors. Compare sinking fund provision. See also call provision.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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