This section allows cross-market comparisons.
Glossary Definition
Call Risk

Arises from the call provision that allows the issuer to retire or "call" all or part of the issue before the maturity date. From the investor's perspective, there are three disadvantages: (1) the cash flow pattern of a callable bond is not known with certainty; (2) because the issuer will call the bonds when interest rates have dropped, the investor is exposed to reinvestment risk, and (3) capital appreciation will be reduced because the price of a callable bond may not rise much above the price at which the issuer will call the bond.