Soft Call Provision(redirected from Soft Call Protection)
Soft Call Provision
In some callable bonds and other fixed income securities, a provision in the indenture stating that the issuer will pay a premium to the face value or market value of the security if it calls it before maturity. Soft call provisions exist to encourage investment in the securities carrying them because they provide a disincentive for early redemption.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved