Non-Callable

Non-Callable - Non-Callable is the bond or the preferred stock, preference share, redeemed by the issuer before its maturity date, or a date specified in the bond indenture or share prospectus, only on the payment of a penalty. Such call fortifications safeguards the holder from loss of interest income caused by early redemption. The bonds are non-callable for the first few years after issued. The United States Treasury is the most common issuer of non-callable bonds. Business bonds usually have some type of call option, except during periods of low interest rates when there is little incentive for a company to issue.