extraordinary redemption

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Extraordinary Redemption

A situation in which a bond issuer redeems a bond before its maturity because the revenue source paying the coupons disappears. For example, suppose a callable bond is issued to build a factory, and the revenue from the factory pays the interest on the bond. If the factory burns down, the company may redeem the bond at par so it no longer has to make interest payments. While the above example is catastrophic, most extraordinary redemptions occur for more mundane reasons; for instance, a mortgage-backed security may be extraordinarily redeemed if too many mortgages are refinanced. An extraordinary redemption is also called a special call.
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extraordinary redemption

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.
References in classic literature ?
The name of Waban signified, in the Indian tongue, wind; so that when the preacher uttered the words, "say to the wind," it was as if he had proclaimed, "say to Waban." As this man afterwards exerted much influence in awaking the attention of his fellow savages to Christianity, it might seem that in this first visit of the messengers of the gospel he was singled out by a special call to work in the cause.
History repeats itself, but the special call of an art which has passed away is never reproduced.
I have no special call to right any Marblehead man, but 'tweren't no fault o' Ireson's.
"We are being quite well looked after by the local police; they're giving us a special call every hour."
LonAar added that there will be no special calls for these funds, but that along with the funds they offer already they will provide additional help which is small compared to the interest shown by employers for co-financing programs.
"Birds of prey are one of the few things that some modern primates have special calls or alarms for." The killer has been identified as an African crowned eagle - also known as the crowned hawk-eagle - which still preys on small primates.
However, the company said that calls to or from abroad and other special calls will still be billed for at least one full minute.

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