Deferred call

Deferred call

A provision that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected.

Period of Call Protection

In callable bonds, a period of time during which a bond may not be prematurely redeemed. Interest payments are guaranteed during the call protection period but not afterward. The bond may be redeemed at any point after the call date, which means that the issuer could return the principal to bondholders and interest payments would cease. The period of call protection exists to protect bondholders from the risk that interest rates will fall before the call date. The period of time is often called the cushion.
References in periodicals archive ?
Marketing department employees for Guangzhou-based Jinyi International Cinemas, the multiplex chain allegedly responsible for two of the three doctored tickets published by Apple Daily, deferred calls to other colleagues, who never responded.
When done well and in a way that really satisfies customers, they can actually be an enormous cost savings center because of deferred calls and visits through other channels.