A putable bond is one where the investor reverses the process and timing of when a bond is redeemed prior to maturity.
Similar to a callable bond, it will have a set date (or dates), with redemption prices - but the investor is the one who can exercise the feature. This gives the investor a big advantage over his interest rate and market risk on his corporate bond.
If interest rates decline, normally a bond price would decline. However, having a putable bond (assuming it is eligible now) can be redeemed away and the bond holder can take advantage of the higher interest rates in other corporate issues at that time.
These are fairly uncommon bonds and can have a low credit rating, but a putable bond can work to your advantage.
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