Call protection

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.

See also

• Call risk
• Hard call protection
• Security
• Soft call protection
• Spens clause