Call protection: Difference between revisions
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imported>Doug Williamson (Expand and add link.) |
imported>Doug Williamson (Classify page.) |
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* [[Soft call protection]] | * [[Soft call protection]] | ||
* [[Spens clause]] | * [[Spens clause]] | ||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 21:30, 27 April 2022
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.
