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With collateralized mortgage obligation (CMOs.), the start of the cash flow cycle for the cash flow window.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
First Call Date
The first date on which a callable bond or other fixed income security may be called. A callable bond allows the issuer to redeem the bond before maturity. When the bond is called, the bondholder receives the par value and does not receive any more coupons. Callable bonds are issued to allow the issuers to hedge against interest rate risk. That is, if interest rates lower significantly, they can call the bond and issue a new bond at a lower interest rate, reducing their liabilities. However, to protect the bondholder, most callable bonds also include a first call date, which guarantees the current interest rate for a certain period of time. The first call date is included in the bond agreement. See also: Doomsday call, Yield to first.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The best-known segment of Thomson Financial, a major provider of financial information. First Call provides current and historical data on broker recommendations, insider transactions, financial ratios, and earnings estimates. Consensus earnings estimates from First Call are often utilized for comparison purposes by the financial press when corporations report quarterly earnings.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.