Call Protection
A protective provision of a callable security prohibiting the issuer from calling back the security for a period early in its life.
Investopedia Commentary
The call protection is advantageous to investors because it prevents the issuer from forcing redemption early on in the life of a security. This means that investors will have a minimum number or years, regardless of how poor the market becomes, to reap the benefits of the security.
The period for which the bond is protected is known as the "deferment period" or the "cushion".
Related Links
Advanced Bond Concepts
Bond Basics Tutorial
Call Features: Don't Get Caught Off Guard
See also: Callable Bond, Callable Common Stock, Deferment Period, Forced Conversion, Sweetener
call protection