Feature of callable convertible bonds that prevents their issuer from calling them for early redemption, no matter how low the market interest rate falls, until the hard call protection period is over or unless the issuer pays a premium specified in the bond indenture. Thus the investor can enjoy the original interest income without the fear that the issuer will call the bond to reissue it at the lower interest rate. This period typically is three years from the date of issue, but also can range anywhere from two to five years. The longer the protection period, the more attractive the bond as an investment.
Related information about hard call protection:
- Hard Call Protection Definition | Investopedia
The period in the life of a callable bond during which the issuing company is not permitted to redeem the bond. Hard call bonds have this feature as a sweetener ...
- Hard Call Protection - Financial Dictionary - The Free Dictionary
Usually refers to callable bonds. The period of time when a bond cannot be called, no matter what the interest rate is. That is, if the interest rate falls sharply, most ...
- What is hard call protection? definition and meaning
Definition of hard call protection: Feature of callable convertible bonds that prevents their issuer from calling them for early redemption, no matter how low the ...
- Hard Call Protection Definition & Example | InvestingAnswers
We explain the definition of Hard Call Protection, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- Hard call protection
Hard call protection usually refers to callable bonds. The protection is the period of time when the bond cannot be called, no matter what the interest rate is.
- Hard Call vs. Soft Call Protection - Budgeting Money
Hard Call Protection. Hard call protection exists if a bond cannot be called before a certain date. For example, you might purchase a 10-year corporate bond, ...
- Hard call protection Definition - NASDAQ.com
Hard call protection: read the definition of Hard call protection and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- What is HARD CALL PROTECTION? - The Law Dictionary
Definition of HARD CALL PROTECTION: Part of a bond that a company cannot get back.