Hard call protection: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
imported>Doug Williamson m (Categorise.) |
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* [[Hard]] | * [[Hard]] | ||
* [[Soft call protection]] | * [[Soft call protection]] | ||
[[Category:Manage_risks]] | |||
Latest revision as of 16:41, 24 March 2020
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.
