Call feature

call feature investment & finance definition
See call provision.
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Call feature
Definition:
Part of the Indenture agreement between the Bond issuer and buyer describing the schedule and price of redemption`s prior to maturity. ...

Call Features
Some CDs allow the bank to redeem or "call" the CD at its sole discretion. These CDs are termed "callable CDs." On pre-determined dates, the bank can choose to give you your money back (including accrued interest) and cancel the CD.

Call Feature (finance term)
Related answers:
What is the rate at which prices are rising called? Read answer...

A call feature of a Collateralized Mortgage Obligation (CMO) designed primarily to reduce the issuer's reinvestment risk.

Mandatory call features
Before buying a callable bond, it is important that you inspect the bond covenant which lists all the terms of the bond issue.

Provisional Call Feature - A provisional call feature is a feature, in a convertible issue, to call the issue if the stock reaches a certain price level. This provisional call feature is of benefit to the issuer, as well as to the investor.

Provisional call feature
A feature in a convertible issue that allows the issuer to call the issue during the non-call period if the price of the stock reaches a certain price.
Pure expectations theory ...

Investigate Any Call Features - Callable CDs give the issuing bank the right to terminate-or "call"-the CD after a set period of time. But they do not give you that same right. If interest rates fall, the issuing bank might call the CD.

Investigate Any Call Features - Your ability to lock in a good interest rate for a long time is restricted with a callable CD.

call feature See callable bond. call loan A loan that must repaid upon the lender's demand. also called callable loan.

On the other hand, certain bonds carry a call feature that may enable early redemption. This is known as prepayment risk. This happens when the firms issue high interest carrying bonds and market rate falls considerably after few yea$.

Automatic Margin Calls: What is not so obvious but what was perhaps even more key is that the internet allowed an automated margin call feature to be built into the platform.

On the other hand, a bond with call features - i.e. where the issuer can redeem the bond early - is deemed to have negative convexity, which is to say its price should fall as rates fall.

However, some of these issues may have call features allowing the issuer to redeem them before maturity. Be sure a check what if any those provisions are before you invest.

I'd like Morgan House to explain "with a call feature attached" when writing about VF.

Among the primary points of negotiation for an issuer are the interest rate, call features and purchase price of the issue. The sale of a new issue of securities in this manner is also known as a negotiated underwriting. Compare: COMPETITIVE SALE.

It considers the coupon yield, interest payments, maturity, and call features. It is a weighted-average term-to maturity of the bond's cash flows, the weights being the present value of each cash flow as a percentage of the bond's full price.

Related: Hedge option strategies Provisional call feature A feature in a convertible issue that allows the issuer to call the issue during the non-call period if the price of the stock reaches a certain price.

See also: Investment, Issue, Interest, Issuer, Call