Early Redemption
Early redemption = a payment event.
This is the payment of a debt obligation prior to its due date.
This is only true for a bond that can be redeemed by the issuer prior to its maturity. Also known as a "redeemable bond". Usually a premium is paid to the bond owner when the bond can be called. Depending on the terms and conditions of that bond, the call can be done by the creditor or/and by the debtor.
The main cause of a call is a decline in interest rates. If interest rates have declined since a company first issued the bonds, it will likely want to refinance this debt at a lower rate of interest. The company will call its current bonds and reissue them at a lower rate of interest.
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