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Related to Non-Callable: Call protection, Call provision


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


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.


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 dealers for the non-callable series A-2 and B-2 notes continue to be J.
RBC Capital Markets has indicated that it intends to acquire 66 2/3 percent or more of each issue of the non-callable notes in the open market from Canadian noteholders, if available, at a price equal to the Canada Yield Price on the date of purchase.
The overwhelming success of our callable debt programs has reduced our need for non-callable funding, as callable debt is a better fit against our mortgage assets," said Jerome Lienhard, senior vice president of global debt funding.
The 'AAApre' rating reflects the express lien of the bondholders on all funds, which have been invested in direct non-callable obligations of the United States and of REFCORP.
s (ABIG) $75 million non-callable unsecured senior notes due in 1999.
This issue due April 15, 1996, is non-callable for one year, and pays quarterly at a spread of 23 basis points over the London Interbank Offered Rate.
Reserves for several bond series have been funded in the form of non-callable surety bonds provided by the respective bond insurer.
The offering involves $500 million of non-callable five year senior notes and $450 million of 31 year senior debentures, which are not callable for the first ten years.
The 'AAApre' rating reflects these pledges and that all funds have been invested in direct non-callable obligations of the United States.

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