Call protection - Definition

A specified initial period during which a Callable bond may not be called. This is often one of the conditions under which issuers of a callable bond are allowed to redeem it prior to Maturity. The duration of the call protection is typically between two and three years after the bond is issued. This is a provision that benefits investors, assuring at least a minimum Amount of time to reap the benefits of the security, regardless of the state of the market. The period during which the bond is protected is commonly known as the "deferment period" or the "cushion."

Terms near "Call protection"

Call provision

Call ratio backspread

Call risk

Call swaption

Callable bond

Callable loan

Callable stock

Called away

Called bond

Cambodia Riel