Why can't putable bonds be american-style?

CFA Level II Fixed Income
#1

this doen’t make sense to me?

#2

I don’t see why they can’t; I think that they simply aren’t. Probably because the issuer gets to make the rules and they don’t want to be surprised.

#3

bonds are issued to raise financing for projects. issuers simply dont have the liquidity to allow for calls.

the puttable market is very small, and very niche, Gazprom and VTB Captial are some issuers, e.g. 4,2500 % VTB Capital MTN -putable- 2006/2016 XS0244105283

tbh I’ve no idea why they are in the syllabus, such a small part of the financial product universe…

#4

thanks Gents!

#5

You’re welcome.