Call Protection

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Dictionary Says

Definition of '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 Says

Investopedia explains 'Call Protection'

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".

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