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deferment period

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deferment period
The period following the issue of a security during which it cannot be called by the issuer. Also called deferred call period, period of call protection, preferred call period. See also call protection.


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(MCMC) has clarified that there is no deferment on access to the high speed broadband network (HSBB) being built by Telekom Malaysia (TM), despite indications that a seven-year deferment period had been granted.
When you cover redundancy with payment protection you would have a deferment period before claiming.
The opportunity cost of deferment in the form of missed cash inflows during the deferment period is high, and so the dominant firm (firm A in the previous example) will invest early.
 
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