Call protection: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Expand and add link.) |
||
| Line 1: | Line 1: | ||
Protection for lenders/investors in securities, against the potentially adverse effects of call risk. | Protection for lenders/investors in securities, against the potentially adverse effects of call risk. | ||
The issuer's right to call for early redemption is restricted. For example, they may be prevented from making a call until a specified time period has elapsed. | |||
The issuer's right to call for early redemption is restricted. | |||
For example, they may be prevented from making a call until a specified time period has elapsed. | |||
Another type of protection is a [[Spens clause]]. | |||
Revision as of 12:58, 29 October 2016
Protection for lenders/investors in securities, against the potentially adverse effects of call risk.
The issuer's right to call for early redemption is restricted.
For example, they may be prevented from making a call until a specified time period has elapsed.
Another type of protection is a Spens clause.
Non-bank investors buying bank loans in the secondary market have been the source of pressure for some call risk protection in loans.
