auction call

Wiktionary

1. n. finance The option to call a securitized bond usually after a set time period or after the deal's assets have amortized substantially. Typically, the deal's trustee places the entire portfolio of assets up for bid. The highest bid wins the auction and the sale proceeds are used to pay off all the tranches in the deal. All money left over after paying off the notes is usually split (not evenly) between the holders the most subordinate class of notes (often referred to as the equity) and the collateral manager.