Noncallable

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Related to Non-Callable: Call protection, Call provision

Noncallable

A preferred stock or bond that cannot be redeemed whenever desired by the issuer.

Noncallable

A security that the issuer cannot redeem before maturity.

noncallable (NC)

A provision of some bond and preferred stock issues that prohibits the issuer from redeeming the security before a certain date, or, in some cases, until maturity. A noncallable provision operates to the advantage of the investor. Compare nonrefundable.

Noncallable.

When a bond is noncallable, the issuer cannot redeem it before the stated maturity date. Some bonds have call protection for their full term, and others for a fixed period -- often ten years.

The appeal of a noncallable bond is that the issuer will pay interest at the stated coupon rate for the bond's full term. In contrast, if a bond is called, you receive a lump-sum repayment of principal, which you must reinvest.

Frequently, rates are lower at call that they were when the bond was issued, which means your reinvested principal will provide a smaller yield.

References in periodicals archive ?
The Reserve Bank of India (RBI) has allowed banks to offer non-callable deposits, fixed-tenure deposit schemes where premature withdrawal is not allowed.
The second tranche consisted of MYR250m of subordinated notes with maturity of 12 years on a 12 non-callable 7 basis.
0]--the ratio of callable long and non-callable duration-matched risk-free interest rates.
The dealers for the non-callable series A-2 and B-2 notes continue to be J.
The 'AAApre' rating reflects this pledge and that all funds have been invested in direct non-callable obligations of the United States.
The tier two notes are non-callable for five years, and will be priced at 325 basis points over mid-swaps.
The 'AAApre' rating reflects the lien of the bondholders and that all amounts have been invested in direct non-callable U.
The 'AAApre' rating reflects the lien of the bondholders and that all amounts have been invested in non-callable direct obligations of the United States.
The 'AAApre' rating reflects the express lien of the bondholders on the escrow fund and that all amounts have been invested in non-callable direct obligations of the United States.
The 'AAApre' rating reflects this pledge to refunded bondholders and that all funds have been invested in non-callable direct obligations of the U.
375% fixed-rate coupon, are non-callable, and mature on May 24, 2012.
The Series A debentures will be non-callable at par for the first 30 years, while the Series B debentures will be non-callable at par for the first 10 years.

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