Understanding Step-Up Agency Bonds
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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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You will find more articles, tips, and resources about fixed-income investing and portfolio management at BondInvestmentMentor.com. Check it out!
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LinkedIn: Christopher Nelson, CFA