period of call protection

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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 CLO will have a five-year reinvestment period and a two-year non-call period with Pretium Credit Management acting as the collateral manager.
Marble Point CLO XI has a two year non-call period and a five-year reinvestment period with a final maturity of 13 years.
RR 1 is backed by a portfolio of broadly syndicated loans with a two-year non-call period and a five-year reinvestment period.
Carlyle Euro CLO 2017-1 has a four-year reinvestment period and a two-year non-call period, with a final maturity in July 2030.
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 accrual term will be the five year non-call period.
The CLO will be backed by a portfolio of primarily senior-secured leveraged loans and will have an approximately four and one-quarter year reinvestment period and a two-year non-call period.
For example, EMEA deals continue to represent the highest percentage of deals which grant an issuer a right to call 10% of an issue at 103% annually during the non-call period and the highest percentage of deals permitting the sale of the issuer to a third party without triggering a change of control put right if certain tests are met (so-called change of control portability).
The non-call period is expected to be a minimum of five years from the issue date.
Regatta II Funding has a four-year reinvestment period, scheduled to end in January 2017, as well as a two-year non-call period that will end in January 2015.
SpareBank One SR-Bank has announced that it will issue new bonds on the Norwegian bond market, envisaging callable bonds in two tranches: one with a variable coupon rate and one with a fixed coupon rate in the non-call period.

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