Understanding Step-Up Agency Bonds

Welcome to Bond Investment Mentor! In this episode, Chris breaks down callable step-up agency bonds. He explains how these agency bonds work and how these investments could deliver less than you expect. Chris also provides a framework for analyzing step-ups using Bloomberg screens and deciding whether they actually make sense for your institution's portfolio.

In this episode:

• Market & Fed update (1:43)
• Listener question: Discount MBS investments & a yield quirk (8:28)
• Understanding callable agencies (13:40)
  • Callable step-up agency basics
  • How to evaluate them (Download: Pre-Purchase Due Diligence Checklists)
  • The challenges of call and coupon interaction
  • Developing a step-up investment approach
• Boost your investment fundamentals with Bond Basics (Learn More) (26:55)

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

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LinkedIn: Christopher Nelson, CFA