Call Risk

Call risk is the risk that an issuer redeems a callable security earlier than the investor expected.

Why this matters to income investors

Issuer redemption can end an attractive coupon and force reinvestment.

How to use call risk in your research

Check the contractual dates and any right to repay early. Compare the cash flow you expect with what could happen if principal returns sooner or later and must be reinvested at a different yield.

This material is general education and information, not individualized investment, tax, or legal advice.