Call provision

call provision
clause in a bond's indenture that allows the issuer to redeem the bond before maturity. The call provision will spell out the first call date and whether the bond will be called at PAR or at a slight premium to par.

CALL PROVISION - In a mortgage or deed of trust, it refers to the mortgagee's or beneficiary's ability ...
CALL REPORT - a quarterly report of income and financial condition commercial banks file with their fed...

call provision A feature of some securities providing for their early retirement ("call" or "redemption").
call schedule A schedule indicating call prices at which a callable security can be redeemed over time.

Call provision
An embedded option granting a bond issuer the right to buy back all or part of the issue prior
to maturity.
Fair price provision ...

Call provision
Definition: A feature of a bond that allows the corporation which issued it to require that it be turned in by current holders for payment of its loan amount (ie: face value) before its scheduled due (ie: maturity) date.

Call Provision A provision that entitles the corporation to repurchase its bonds or preferred stock from their holders at stated prices over specified periods.

CALL PROVISION
A bond provision that allows the bond issuer to redeem the bond prior to the bond's maturity date.

Call Provision
A provision on a bond or other fixed-income instrument that allows the original issuer to repurchase and retire the bonds.

A call provision in a municipal bond indenture that establishes the right of redemption for the issuer on any interest payment due date.
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Personal Finance Glossary ...

Any-interest-date
A call provision in a municipal bond indenture that establishes the right of redemption for the issuer on any interest payment due date.

call provision A clause in the indenture of a bond expressing the right of the issuer to redeem... call ratio backspread An investment strategy combining options to limit risk while still allowing...

[WCSU] A dollar amount, usually stated as a percentage of the principal amount of bonds called, paid as a penalty or premium to the investor for the exercise of a call provision.

Call price The price for which a bond can be repaid before maturity under a call provision. Call provision An embedded option granting a bond issuer the right to buy back all or part of the issue prior to maturity.

call protection The aspects of the call provisions of an issue of callable securities that partially protect an investor against an issuer's call of the securities or act as a disincentive to the issuer's exercise of its call privileges.

Time during which a security, with a call provision, cannot be redeemed by the issuer. Corporate and municipal issuers typically have a call protection period of 10 years.

the act of redeeming a preferred stock or bond issue prior to its maturity. A call provision is often issued on a security when the interest rate greater than one that has no call provision.

Doomsday Call - A call provision added to fixed income securities that allows for early redemption by the issuer if certain conditions are favorable.
Dotcom - A company that embraces the internet as the key component in its business.

About 50% of convertible equity issues also have a 'soft call provision.' If the common stock price reaches a specified ratio, the issuer is permitted to force conversion before the end of the normal protection period.

Call provisions in a bond's indenture agreement specify whether the bond is callable or non-callable. Because so many bonds issues are callable, bond yields are often quoted to the first date at which the bonds could be called instead of maturity.

Written agreement specifying the terms and conditions for issuing bonds, stating the form of the bond being offered for sale, interest to be paid, the maturity date, call provisions and protective covenants, if any, collateral pledged, ...

Department of the Treasury will issue a Bond that has a call provision. When Treasury exercises its option to call a Bond, it intervenes prior to the Bond's original maturity date and redeems the Bond.

Soft call provisions will be in effect for two to three years after hard call protection has expired. Soft call protection is a compromise between issuers and investors.

Call risk
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.
Commercial risk
The risk that a foreign debtor will be unable to pay its debts because of business events, such as bankruptcy.

Premiums are usually associated with optional call provisions. When a bond is said to be "callable on 11/1/99 at 102", the first optional call date is on 11/1/1999 and the call price is 102%, ...

A feature of some callable bonds that establishes an initial period when the bonds may not be called.
Call provision
An embedded option granting a bond issuer the right to buy back all or part of an issue prior to maturity.
Call risk ...

RISK " The chance of loss on an investment due to many factors including, inflation, interest rates, default, politics, foreign exchange, call provisions, etc.
RISKLESS TRANSACTION " See: Simultaneous Transaction.

A dollar amount, usually stated as a percent of the principal amount called, paid by the issuer as a "penalty" for the exercise of a call provision.
Callable bonds ...

Call Feature (or Called) - The issuer's right to redeem outstanding bonds before their scheduled maturity. The dates when an issuer may call bonds are defined in the official statement of every issue that has a call provision in its indenture.

In different cases the financial assets may terminate before the stated maturity (in presence of call provisions, bankruptcy of the issuer..)or can be also increased or extended on demand of both counterparties.

Call Provision
A provision of a bond or preferred stock issue, listed in its indenture (the formal agreement between the bond issuer and the holder) that a...(Read more)
Call Spread ...

(Because Morningstar uses fund company calculations for this figure and because different companies use varying interest-rate assumptions in determining call likelihood and timing, we ask that companies not adjust for call provisions.) ...

So the yield to first call can be a useful tool as you compare bonds you are considering. For example, you might prefer a bond whose initial call date is further in the future or one without a call provision.

See also: Expense, Call date, Banks, Risk arbitrage, Options contract