period of call protection

(redirected from Non-Call Periods)

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 ?
"CLO managers have taken advantage of optimum financing conditions and are refinancing liabilities as soon as transactions exit their non-call periods," said Managing Director and U.S.
"At this point, we expect CLO resets and refinancings to occur at the same brisk pace seen last year with much of the activity coming from 2015 and 2016 CLOs either just reaching or are nearing the end of their non-call periods," said Kendra.

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