A warrant that can only be exercised if the host asset, typically a bond or pferred stock, is surrendered. Until the call date of the host asset is reached, the warrant can only be exercised if the holder surrenders an equal amount of host asset. The time period in which the investor has to surrender the equal amount of host asset is set in the warrant itself. After that time has passed, the warrant's holder can buy non-callable bonds.
Also known as "harmless warrant" or "wedded warrant". |||Wedding warrants are so named because the warrant is "wedded" for a certain period of time, and can only be "porced" from the host bond after that time has passed. Wedding warrants were introduced as financial products in the 1980s. Investors typically don't use them because they have to hold the warrant for a long period of time until the call date is reached, or risk having to buy the host bond as well.