What does noncallable mean?
Noncallable describes a financial instrument that cannot be called, or redeemed, by its issuer before a stated date or according to a specified condition. The term is especially common for bonds, notes, and preferred securities, where investors receive periodic interest and the issuer is generally obliged to repay the principal at maturity. A noncallable arrangement gives the issuer stability by preventing investors from demanding repayment merely because interest rates have fallen. It also limits investors' ability to take advantage of more favorable financing conditions before the security matures. In broader English, the adjective can mean simply that someone or something cannot be called or contacted, but its established technical use is in finance.
Not redeemable at the issuer's option before a specified date or under a specified condition, especially of a bond, note, or other security.
"The company sold a noncallable bond to fund its expansion."
This is the standard financial and legal sense of the term.
Not able to be called, summoned, or contacted.
"The department left a noncallable number on the notice."
This broader sense is much less common than the financial sense.
A noncallable security is a promise that cannot be cashed in early—protection for the issuer and a constraint for the investor.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does noncallable come from?
The word was formed in modern English by adding the prefix non- to callable. “Callable” is derived from call plus the suffix -able, meaning capable of being called; related forms include recallable and caller. The financial sense developed from the general idea of a security that cannot be called for early redemption.
Related word forms
How noncallable is actually used
The term is primarily used in finance and legal contexts, especially in the United States. It is more specific than simply “not callable,” because it commonly refers to the issuer's inability to require early redemption of a security.
Easily confused with noncallable
A callable security can be redeemed at the issuer's option before its scheduled maturity, whereas a noncallable security cannot.