soft call protection

soft call protection
(for convertible bonds)
One of two types of call protection. Soft or provisional call protection prohibits an issuer from calling a bond issue until a certain threshold price level for the underlying stock has been reached. For example, the bond structure might specify that the bonds may be called when the closing price of the underlying stock is at least 120-150 percent of the conversion price for any 20 out of 30 consecutive trading days. Soft call provisions will be in effect for two to three years after hard call protection has expired. Soft call protection is a compromise between issuers and investors. It guarantees that the issuing company will not be able to call the bonds until the investors have achieved a certain level of profitability, but it also provides issuers with more flexibility than that available from hard call protection and allows the company to call the bonds once the bondholders have achieved a certain threshold level of returns. American Banker Glossary

Financial and business terms. 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • call protection — A feature of a bond issue that protects investors from risk of prepayment. In mortgage backed bonds, call protection may take the form of prepayment penalties or lock in periods. A lock in period is a time period, starting from the issue date and …   Financial and business terms

  • provisional call protection — See soft call protection (for convertible bonds). American Banker Glossary …   Financial and business terms

  • Copy protection — Copy protection, also known as content protection, copy obstruction, copy prevention and copy restriction, refer to techniques used for preventing the reproduction of software, films, music, and other media, usually for copyright reasons.[1]… …   Wikipedia

  • European Nightjar — Taxobox name = European Nightjar status = LC | status system = IUCN3.1 image width = 260px regnum = Animalia phylum = Chordata classis = Aves ordo = Caprimulgiformes familia = Caprimulgidae genus = Caprimulgus species = C. europaeus binomial =… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

  • China — /chuy neuh/, n. 1. People s Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Cap.: Beijing. 2. Republic of. Also called Nationalist China. a republic consisting mainly of the island of Taiwan off the SE coast …   Universalium

  • Life Sciences — ▪ 2009 Introduction Zoology       In 2008 several zoological studies provided new insights into how species life history traits (such as the timing of reproduction or the length of life of adult individuals) are derived in part as responses to… …   Universalium

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”