Make-Whole Call

Make-whole call is a redemption provision requiring a payment calculated from discounted remaining cash flows under the security’s formula.

Why this matters to income investors

A call price formula can compensate investors for some foregone interest after early redemption.

How to use make-whole call 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.