Call Protection

What is a ‘Call Protection’

A call protection is a protective provision of a callable security prohibiting the issuer from calling back the security for a period early in its life.

Explaining ‘Call Protection’

The call protection is advantageous to investors because it prevents the issuer from forcing redemption early on in the life of a security. This means that investors will have a minimum number or years, regardless of how poor the market becomes, to reap the benefits of the security.

Further Reading

  • Interest rate uncertainty and the value of bond call protection – [PDF]
  • Agency costs and alternative call provisions: An empirical investigation – [PDF]
  • Convertible bond design and capital investment: The role of call provisions – [PDF]
  • Probe into the Aspect of Sequential Finance and Design of Convertible Bond of Call Provisions – [PDF]
  • An empirical examination of call option values implicit in US corporate bonds – [PDF]
  • High-yield bond default and call risks – [PDF]
  • Social protection and disability: a call for action – [PDF]
  • An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – [PDF]
  • … sovereignty/Exploring collaborations: Heterodox economics and an economic social rights framework/Workers in the informal sector: Special challenges for economic … – [PDF]
  • Was the Asian crisis a wake-up call?: Foreign reserves as self-protection – [PDF]