call risk
Not necessarily a bad thing. Call risk is when the issuer decides they want to buy back all or a portion of the bond before the maturity date. The investors capital is repaid with an additional premium to compensate for early termination.
This may be a bad thing due to the loss of future inflows from the investment.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: Personal investment management
0
Other terms in this blossary
Creator
- Timmwilson
-
(Bronze) 187 points - 100% positive feedback
(Beijing, China)
