Call protection: Difference between revisions
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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. | |||
Non-bank investors buying bank loans in the secondary market have been the source of pressure for some call risk protection in loans. | Non-bank investors buying bank loans in the secondary market have been the source of pressure for some call risk protection in loans. |
Revision as of 12:56, 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.
Non-bank investors buying bank loans in the secondary market have been the source of pressure for some call risk protection in loans.