Periods of higher yields and depressed bond prices may make new primary issuance more challenging. For an existing bond issuer with available liquidity however, they present an opportunity. Utilising a bond buyback, a bond issuer may be able to retire a portion of their existing bond indebtedness at a discount to par. Depending on the level of the discount and the other potential uses for that liquidity, a bond buyback may therefore be a very efficient use of an issuer's excess cash. There are, however, a number of considerations, including US securities laws, market abuse considerations and the requirements of the terms and conditions that must be taken into account. Read our Quick Guide to Bond Buybacks to explore the key considerations for a potential bond buyback.

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