Put offer risk
The risk of staying in an issue on whatever terms the issuer sets after the coupon reset.
How to read the number
A put offer hands the initiative to the issuer: it announces the rate, and the holder is left choosing between that rate and an exit at par.
When the metric lies
The rate for the next period is sometimes set deliberately low to push holders into the buyback. A missed window turns the bond into a near-zero-income, thinly traded position until maturity.
Also known as: reset risk, offer window risk