call risk
Definition
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.
 Cite this definition
'call risk
' appears in the definitions of these terms on BusinessDictionary.com
negative convexity
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