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A preferred stock or bond that cannot be redeemed whenever desired by the issuer.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


A security that the issuer cannot redeem before maturity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The model presented in this paper argues that an entrant can use noncallable convertible debt to avoid predation in entry deterrence games.
This price-process model is identical to the one used by Murphy (1991), except that implied volatility is used to estimate the variation in noncallable debt values whereas historical variance was used in the 1991 study because implied volatility figures did not exist in the pre-1984 portion of that study's sample.
The values of Treasury securities are often summarized by the yield curve, which plots the yields of all noncallable securities against their maturities.
Perhaps the best way to understand the impact of including a call option on a municipal bond is to look at the value of a callable bond as if it were the value of a noncallable bond minus the value of the embedded call.
Because the callability feature introduces bias in the risk premium of a subordinated debt, this study used only noncallable debt risk premium.
CallProtection is equal to one for noncallable convertibles, which constitute 21.80% of the sample.
At the 5-year maturity, there were only two noncallable securities with close to 5 years remaining to maturity, so those two rather than three securities were used to measure yields at that maturity.
(39) Fixed-rate, noncallable, semiannual coupon, long-term (ten-to-twenty-year) bonds were the most commonly issued instruments during the sample period.
The fraction of public bonds that are callable is the number of callable public bond issues outstanding divided by the total number of callable and noncallable public bond issues outstanding.
The study focused exclusively on newly issued, noncallable debt securities with maturities greater than one year.
The qualifying subordinated debt would be 5-year, noncallable, fixed rate debt, and there would be a minimum of two issues a year, with the two qualifying issues being at least two months apart.
These are noncallable securities issued on a regular basis in larger sizes than the agencies' typical issues.