Bond retirement

A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. A bond retirement may occur when bonds reach their scheduled maturity dates, in which case the issuer is obligated to retire them. Or, a bond may be callable, in which case the issuer can retire the bonds early if it is financially advantageous to do so. Finally, a retirement can occur at the behest of investors if the bonds are convertible, in which case bonds are retired and replaced with the equity shares of the issuer.