Minimum put notice days
Minimum put notice days are the minimum number of days in advance that an investor must notify the issuer of a bond before exercising their right to sell the bond back to the issuer at a predetermined price. This feature is typically found in bonds with a put option, which gives the bondholder the right to sell the bond back to the issuer before the bond's maturity date.
For investors, the value of minimum put notice days lies in providing them with a clear timeframe within which they must decide whether to exercise their put option. This notice period allows the issuer to prepare for potential bond buybacks and manage their cash flow effectively.
The availability of a put option with reasonable notice days can enhance the yield of a corporate bond. Investors are willing to accept a lower yield (interest rate) on the bond because they have the option to sell it back at a predetermined price if needed.