Definitions for "Call Protection"
Related Terms:
Call date, Put bond, Long bond, Term bond, Callable bond, Callable bonds, Callable, Call feature, Non-callable, Serial bond, Yield to call, Call provision, Non-callable bond, Mob spread, Zero coupon bond, Zero-coupon bond, Bond anticipation note, Original maturity, Deep-discount bond, Redeemable, T-bond, Strip, Serial bonds, Call price, Cushion bond, Coupon bond, Ban, Oid, Coupon bonds, Accrual bond, Series ee bond, U.s. treasury bond, Term bonds, Brady bond, Original issue discount, Gilt, Bearer bonds, Deep discount bonds, Corporate bond, Savings bonds, Government bonds, Gilts, Bonds, Bondholder, Call risk, Savings bond, Bond issue, Retractable, Bond market
A bond contract clause that prohibits the issuer from redeeming-or calling-the bond for a specified period of time.
The number of years that an investor has against a bond being redeemed.
a provision in the terms of a bond specifying the period of time during which the bond cannot be called by the issuer.
Refers to the length of time a security cannot be redeemed by the issuer.
A characteristic of some callable bonds in which the bonds may not be called for a specified initial period, usually two to three years.
The aspects of the redemption provisions of an issue of callable bonds that partially protect an investor against an issuer's prepayment of the bonds prior to maturity or act as a disincentive to the issuer's exercise of its call privileges. These features include restrictions on an issuer's right to call bonds for a period of time after issuance (for example, an issue that cannot be called for ten years after its issuance is said to have “ten years of call protection”) or requirements that an issuer pay a premium call price for bonds called within a certain period of time after issuance. See: PREMIUM CALL PRICE; Redemption Provisions.
A provision in a bond's indenture setting a certain period during which the bond cannot be called away by the issuer.
A term used to describe how long a bond or preferred stock is protected from being called.
The length of time during which a bond, preferred stock, etc. cannot be redeemed by the issuer.
The length of time during which a security cannot be redeemed (called) by the issurer.
Call protection refers to the amount of time from the current date until a bond can be called. For example, if the first call on a bond is in 3 years from now, a buyer will have 3 years of call protection, and they are assured that they can own the bond for at least 3 years.
A feature of some callable bonds that protects the investor from calls for some initial period of time.
A feature that provides assurance to an investor that early or unscheduled redemption of a particular security will not occur due to a decline in interest rates.
A feature of some callable bonds that establishes an initial period when the bonds may not be called.
The degree of security that an investor has against a bond being redeemed. Practically, the number of years between today and the call date.
Time during which a security, with a call provision, cannot be redeemed by the issuer. Corporate and municipal issuers typically have a call protection period of 10 years. Before buying a bond, an investor should be sure to check that it has a call protection. Otherwise, the bond can be called away at any time as designated in its indenture. See: Call; Callable; Corporate Bond; Indenture; Municipal Bond; Redemption
A provision that limits or disallows the calling of a security during its first few years.
A term used to describe a bond or preferred stock without a call feature or with a call feature which cannot be activated for a period of time.
Call protection is the length of time during which a security cannot be redeemed by the issuer. Corporate and municipal issuers generally provide ten years of call protection. U.S. government securities are generally not callable, although there is an exception in certain 30-year Treasury bonds, which become callable after 25 years. Investors who are dependent on the income from bonds may look for bonds with call protection.