Call risk

call risk investment & finance definition
A lender's potential opportunity loss associated with premature repayment of principal on a debt instrument.

Call Risk
Investment Dictionary:
Call Risk
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Call risk
Definition:
The Combination of Cash flow uncertainty and Reinvestment risk introduced by a Call provision. ...

Call Risk - The possibility that prepayments will increase above an anticipated rate, causing earlier-than-expected return of principal, usually during a time of falling interest rates.

Call risk
The risk that an issuer may redeem a security sooner than expected. See callable bond.
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Call risk
For a CMO, the risk that declining interest rates may accelerate mortgage loan prepayment speeds, causing an investor's principal to be returned sooner than expected.

Call Risk
The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem the issue prior to maturity.

Call Risk
The risk that bonds will be redeemed (or "called") before maturity. This possibility increases during periods of falling interest rates.

Call risk
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.

Call Risk
Call risk is the risk associated with the possibility that a callable bond will be redeemed before maturity.
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Call Risk: A call risk is a type of investment risk in which a security may be called, or redeemed, prior to its maturity (the point at which it is due and payable).

Call Risk
Risk to a bond holder that a bond may be redeemed before scheduled maturity.

Call Risk
A bondholder's risk that the bond may be redeemed prior to maturity.
See: Call; Callable; Maturity Date; Redemption; Risk
Cancel Order
A client's instructions to cancel a buy or sell order that was previously placed but not yet executed.

call risk The potential for cash flow issues that the holder of a callable bond enables... call swaption Short for call swap option. This is an exchange in which the buyer pays an option... callable Able to be redeemed prior to maturity.

Call risk or reinvestment risk: If a bond is callable, the issuer can redeem it prior to maturity, on defined dates for defined prices.

See also: Investment, Interest Rate, Risk, Interest, Bonds