Call Risk

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Call risk

The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.

Call Risk

A risk that a callable bond will be repaid early and that the money earned may not be able to be reinvested in a security with a comparable return. Suppose one invests in a callable bond with coupon payments of 4%. However, interest rates fall and the issuer calls the bond and pays the par value. The investor may make a profit, but now he/she may only purchase a bond with a coupon of 2.5%. Most callable bonds include call periods in the indenture, protecting the bondholder from this risk for a certain period of time. Call risk is one of the most common kinds of reinvestment risk.

call risk

See prepayment risk.

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Bond Ladder prepayment risk VC venture capital			I regard myself as part of a movement we call risk literacy. Academics call for introduction of 'risk literacy' for school students by Asian News International The two-year facility with a further one year extension option eliminates margin call risk to CapLease for general interest rate and credit spread changes on all loan collateral other than CMBS securities. CapLease Announces New $250 Million Term and Revolving Financing ... by Business Wire The IDR is based on default remaining a real possibility for Thornburg's corporate obligations, particularly if Thornburg becomes exposed to meaningful margin call risk after expiration of the override agreement. Fitch Revises Thornburg's IDR To 'CCC' After Defaults Cured; Outlook ... by Business Wire			Calendar Effect Calendar Effects Calendar Spread Calendar Straddle or Combination Calendar Year Calificacion crediticia Calificacion de bonos Calificacion dividida Calificacion provisoria Call Call an Option Call bancario Call Date Call Feature Call Loan Call Loan Rate Call Market Call Money Rate call option Call Premium Call Price Call Protection call provision Call Ratio Backspread Call Report Call Risk Call Rule Call Spread Call Swaption Call Warrant call watch Callability Callable Callable Bond callable CD Callable Common Stock Callable Preferred Stock Called Away CAM Camara compensadora Cambiale Cambio Cambio brusco en la direccion del mercado Cambio de precio Cambist Cambrist CAMELS Rating System Campagna agricola Campagne agricole Campbell Harvey CAMPS			Call Progress Tone Detection Call Progress Tone Detector Call Prompter Call protection Call Protection Period Call Protection Periods Call Protocol Message Call provision Call provisions Call provisions call public attention to Call Quality Monitoring call rate call rate Call Rates Call Ratio Backspread Call Ratio Backspreads Call Record Management Process Call recorder Call Redirection or Call Deflection Notification Call Reference Value Call Report Call Reporting System Call Reports Call Request Call Resolution Time Call Risk Call Risks call roll call round Call Routing Apparatus Call Routing Database Call Routing Device call routing service Call Rule Call Rules Call Sale Call Sales call schedule call schedule Call screener Call semantics Call Server Call Service Position Call Service Position Console Call Servicing Information Delivery System Call Session Control Function Call Setup Error Probability Call Setup Failure Probability Call Setup Success Rate Call Setup Success Ratio Call Setup Time Call Setup Time

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