Call protection is a feature of some
securities that prevents the
issuer from calling the securities back before a certain date. This means that investors who hold these securities can be confident that they will be able to hold onto them for the specified period of time.
Call protection is often used by issuers to provide investors with some degree of security. This is because it can be difficult to predict how interest rates will change in the future. If interest rates fall, the issuer may be able to refinance the securities at a lower interest rate. However, this would mean that they would have to call back the existing securities and issue new ones. This could be disruptive for investors, as they would have to sell their securities at a lower price than they paid for them.