Many fixed income investments have a predefined maturity date. When making the investment, the date is stated in the contract and known by the investor. There are also some investments which may have embedded clauses to allow the issuer of the investment to repay investors early. This is known as a “call feature”. The details of the criteria or circumstances which allow the issuer to call the investment, along with the dates when the call feature can be exercised, are stated in these types of investments. Whether your fixed income investment has a fixed maturity date or is callable, it is important to start to look for reinvestment options close to the maturity/call dates.

For investments that mature or are called, the investor faces reinvestment risk. The question in the mind of the investor is now, “Where do I invest the funds received from my previous investment?” Having been comfortable with the returns and the risk level of the previous investment, ideally we would want to reinvest in an instrument with similar (or better) risk and reward characteristics. However, it is important to understand that with changes in market conditions and global economic conditions, the risk/reward dynamic of the investment options currently available may be vastly different from when we made the previous investment. Interest rates may have declined since, and the investor is now faced with two scenarios:

https://www.jamaicaobserver.com/sunday-finance/what-to-do-when-your-investment-matures_241994?profile=1056