Glossary
- Range warrant
- ratB (price addendum)
- ratG (price addendum)
- Rating
- Rating agency
- Real-time price
- Redemption
- Registered share with restricted transferability
- Registered shares
- Registrar
- Registrar company
- Regulated Market
- Renewal coupon
- Repo
- Repurchase agreement
- Repurchase in the open market
- Resistance level
- Retail investment fund
- Retained earnings
- Return
- Review (indices)
- REX (German bond index)
- Rho (warrants)
- Risk of total loss
- Round lot
- Runaway gap
Repurchase in the open market
An issuer can repurchase a bond in the open market as a way of paying back its debt.
Issuers will often buy back their own bonds on the stock exchange when they have adequate funds available. A repurchase on the open market can also be a lucrative strategy if the bond is listed below par, i. e. if the current price is lower than the redemption price.
By repurchasing its own bonds, an issuer lowers its debt/equity ratio, which in turn enhances its creditworthiness.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.