What is a ‘Call Protection’
A call protection is a protective provision of a callable security prohibiting the issuer from calling back the security for a period early in its life.
Explaining ‘Call Protection’
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.
Further Reading
- Interest rate uncertainty and the value of bond call protection – www.journals.uchicago.edu [PDF]
- Agency costs and alternative call provisions: An empirical investigation – www.jstor.org [PDF]
- Convertible bond design and capital investment: The role of call provisions – onlinelibrary.wiley.com [PDF]
- Probe into the Aspect of Sequential Finance and Design of Convertible Bond of Call Provisions – en.cnki.com.cn [PDF]
- An empirical examination of call option values implicit in US corporate bonds – www.jstor.org [PDF]
- High-yield bond default and call risks – www.mitpressjournals.org [PDF]
- Social protection and disability: a call for action – www.tandfonline.com [PDF]
- An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – www.sciencedirect.com [PDF]
- … sovereignty/Exploring collaborations: Heterodox economics and an economic social rights framework/Workers in the informal sector: Special challenges for economic … – www.tandfonline.com [PDF]
- Was the Asian crisis a wake-up call?: Foreign reserves as self-protection – www.sciencedirect.com [PDF]
