noncallable

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Bond or preferred stock that cannot be redeemed by the issuer prior to maturity or before a date specified in the bond indenture. Most bonds are noncallable for the first five years, and U.S. Treasury bonds generally cannot be called until they are close to maturity. The bond indenture agreement in most corporate bonds protects holders from loss of income from early redemptions by requiring issuers to pay a premium above par value that is at a maximum at the First Call Date and diminishes afterward. In fact, yields on most corporate bonds are quoted from the first date a bond becomes callable. Yield is quoted to the first call date when the trading price is above par and an early call involves loss of principal. See also Yield to Call.

Securities that cannot be called by the issuer prior to maturity.

Investopedia Says:
Noncallable securities include preferred stocks and bonds. These securities usually offer lower yields to investors due to their reduced risk.

Related Links:
Learn why early redemption occurs and how to avoid potential losses. Bond Call Features: Don't Get Caught Off Guard