And I just replaced it with CUSIP 3130B13S4, FHLB 6.5% bond maturing 05/09/2044 callable quarterly starting 08/09/2024. And if that gets called I'll just replace it with another one. Lather, rinse, repeat.
I got a call notice this morning for my FHLB 6.9% bond maturing 11/06/2043. I'm not surprised, but at least now I know the call threshold (for now) is somewhere between 6.6% and 6.9% for those long term (10-20 year) callables. No big deal. I'll simply deploy into another FHLB long-term callable...
But...but...but... Joe Namath, Jimmie Walker and Henry Winkler told me it was free! I trust those guys. They wouldn't lie to me, would they? :rolleyes:
Current best non-callable brokered CD rates at Schwab (04/26/24):
12 mo - 5.15%
18 mo - 5.05%
24 mo - 5.00%
36 mo - 4.85%
48 mo - 4.65%
60 mo - 4.55%
Rates are 5 basis points higher this week on 24-60 month CDs, unchanged on shorter maturities.
All of the above FHLB bonds survived the call date so I still own them and am happily still collecting 6%+ coupons.
The FHLB website allows you to search for call history for any CUSIP here:
https://www.fhlb-of.com/ofweb_userWeb/pageBuilder/calls-and-amortizations-69
Bonds that are...
Unless you are doing it on your terms. The best j*b is the one where they need you more then you need them, you can dictate the terms and can tell them to, um, buzz off at any time.
I have four FHLB bonds that have possible calls this coming week. One will definitely not be called. It pays 5.1% interest and is maturing in 6 months. The other three are more interesting:
FHLB 6.55% maturing 10/25/2033 (continuously callable after 4/25/24)
FHLB 6.00% maturing 01/26/2044...
Current best non-callable brokered CD rates at Schwab (04/12/24):
12 mo - 5.15%
18 mo - 5.05%
24 mo - 4.95%
36 mo - 4.80%
48 mo - 4.60%
60 mo - 4.50%
Brokered CD yields are trying to catch up to treasuries. They are getting close but still lagging a wee bit. Another 5-10 basis points...