Callable Agency Bonds: Know the Trade-Offs

Welcome to Bond Investment Mentor! In this episode, Chris explores callable agency bonds and examines what you're actually trading away when you buy these securities. He walks through how callable bonds work, the three main call structures you'll encounter, and the portfolio-level implications of giving up control to the issuer. You'll also learn which Bloomberg screens to use when analyzing callables and how to think strategically about whether these securities belong in your portfolio. 

In this episode:

• Fed & Market Update (2:23)
• Proposed FHLB/FRB liquidity stress solution (9:02)
• Understanding callable agencies (11:40)
  • Callable agency basics
  • Types of call structures
  • The yield/control trade-off
  • Bloomberg screens for callable agency analysis
• The value of one-on-one mentoring (Learn More) (32:55)

If you have questions about anything covered in this episode, please email me at Chris @ BondInvestmentMentor.com.

Do you know someone who could benefit from this information? Please share this episode and podcast with them!

You will find more articles, tips, and resources about fixed-income investing and portfolio management at BondInvestmentMentor.com. Check it out!

Let’s Connect via Social Media!

LinkedIn: Christopher Nelson, CFA