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Coupon reset

The issuer's right to set a new rate for the following periods, usually alongside a put offer.

How to read the number

A reset lets the issuer refit the cost of its debt to the current market without going through a new placement.

When the metric lies

The new rate is announced shortly before the date, and the decision to put the bond back has to be made in a short window. Missing it leaves the holder on terms nobody offered them a choice about.

Also known as: rate reset, coupon refixing

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