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Contractual savings institutions
Contractual savings institutions obtain funds at periodic intervals on a contractual basis. The industry is classified into two main groups insurance companies and pension funds. The liquidity of their assets is less significant than for depository institutions because they can predict with reasonable accuracy the future payments due to their customers.
As a result they invest their funds in long-term securities (such as corporate bonds, stocks and mortgages).
A bond is said to be currently callable if the issue is not protected against early call provision. But most new bond issues, even if currently callable, us
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discuss the applicability of operation cycle in avegetable growing business
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