| Call Protection | |
 A protective provision of a callable security prohibiting the issuer from calling back the security for a period early in its life. |
|
 The call protection is advantageous to investors because it prevents the issuer from forcing redemption early on in the life of a security. This means that investors will have a minimum number or years, regardless of how poor the market becomes, to reap the benefits of the security. The period for which the bond is protected is known as the "deferment period" or the "cushion". |
|
 Advanced Bond Concepts - This detailed tutorial explains some of the more complex concepts and calculations you need to know for trading bonds, including bond pricing, yield, term structure of interest rates, duration, and much more. Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial. Call Features: Don't Get Caught Off Guard - Learn why early redemption occurs and how to avoid potential losses. |
|
Related Terms
 |