period of call protection

(redirected from Non-Call Period)

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.

period of call protection

References in periodicals archive ?
The notes are subject to a non-call period of five years.
The transaction documents permit the re-pricing of any class of notes to occur at any time after the non-call period (ending January 2013) upon the majority vote of the LP Certificate holders.
30% for the Series D Units will continue until July 27, 2004 -- the end of the current non-call period.
In addition, the non-call period is scheduled to terminate on the May 2008 payment date.
Independence IV is a quasi-static transaction which includes a portfolio that will have a three-year Non-Call period ending in 2006, during which proceeds from the sale of collateral may be reinvested in portfolio assets.
Other key features of this issue include a 10 year non-call period and Capital is allowed to skip up to five consecutive quarterly coupon payments without triggering an event of default.
Commonly, a CDO transaction will allow a majority or supermajority of the equity holders to call the rated notes on any payment date on or after the payment date on which the non-call period has ended (typically two to four years from origination), as long as the proceeds of the asset liquidation will be sufficient to redeem all of the rated notes in full (including accrued interest) and cover the swap-termination payments and all other fees and expenses.
During the non-call period, payments of principal will be returned by lottery in $1,000 increments.
The CLO has a four-year reinvestment period and a two-year non-call period, with a final maturity of January 23, 2026.
The non-call period is five years from the issue date.
KVK CLO 2013-1 has a four-year reinvestment period, scheduled to end in April 2017, as well as a two-year non-call period that will end in April 2015.
The Shackleton I CLO, Ltd is an 11-year deal and has a four-year reinvestment period and a two-year non-call period.

Full browser ?