The cash flow risk resulting from the possibility that a callable bond will be redeemed before maturity. Callable bonds can be called by the company that issued them, meaning the bonds have to be redeemed by the bondholder, usually so that the issuer can issue new bonds at a lower interest rate. This forces the investor to reinvest the principal sooner than expected, usually at a lower interest rate.
Related information about call risk:
- Call Risk Definition | Investopedia
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.
- What is call risk? definition and meaning - InvestorWords.com
Definition of call risk: The cash flow risk resulting from the possibility that a callable bond will be redeemed before maturity. Callable bonds can be called by the ...
- Call Risk Definition & Example | InvestingAnswers
We explain the definition of Call Risk, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- Call Risk - Financial Dictionary - The Free Dictionary
Definition of Call Risk in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Call Risk? Meaning of Call Risk as a finance term ...
- What is call risk? definition and meaning - BusinessDictionary.com
Definition of call risk: Probability of loss due to redemption of a bond or other debt security (bond, preferred stock or preference shares) by its issuer before its ...
- Interest Rate and Call Risk - finra
From interest rate risk to inflation risk, bonds carry their own set of risks that investors should understand.
- Call Risk: Definition from Answers.com
risk to a bondholder that a bond may be redeemed before scheduled maturity. Bondholders should read the call provisions in a bonds indenture to understand.
- Incapital - Call Risk
Call Risk. Many bonds contain a "call' provision, giving the bond issuer the right to retire (redeem) the debt before the scheduled maturity date. For the issuer, the ...