Hard call protection

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Revision as of 11:21, 27 August 2013 by imported>Doug Williamson (Spacing 27/8/13)
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A strong form of protection for lenders/investors in securities, against the potentially adverse effects of call risk.

Hard call protection is simply a ban on any unilateral early redemption of the security by the borrower/issuer.

The agreement of the lender/investor is required before any early redemption, on whatever terms the lender/investor insists on for early redemption.


See also