Bond Call Notification

[TickTock]

So... I was updating my bond spreadsheet today and noticed that we've had the first bond call.

$4k in my Vanguard Roth account. On 1/22/24.

Now, I accepted the call risk when I bought the bonds. But as far as I can tell, there was no notice given to me when the call came in. Is this typical?

Not a big deal in this specific instance, but I do expect to be notified when account events happen so that I can make the appropriate adustments.

 

[pb4uski]

Yes, usually there is a notification of some sort, but sometime not. I know at Schwab they will append "*** Called mm/dd/yyy" of something similar to the description of the bond in your positions listing.

 

[jazz4cash]

I would call them and inquire. Is there some sort of alert you can activate? I get so many notices it’s too easy to ignore them but I definitely noticed when I got my 1st Call Notice at Fido. I also look at the activity tab across all accounts very often to monitor incoming dividends.

 

[copyright1997reloaded]

I keep an indicator in my spreadsheet (color coded) for callable issues along with a callable date.

I have one that is pretty much guaranteed to be called, JP Morgan Chase 5.6% CD maturity 9/6/24, issue 10/31/23, first call 3/6/24).

My decision on this one (when I bought it) was that I would be happy with 5.6% yield for the six months through a year.

 

[TickTock]

I would call them and inquire. Is there some sort of alert you can activate? I get so many notices it’s too easy to ignore them but I definitely noticed when I got my 1st Call Notice at Fido. I also look at the activity tab across all accounts very often to monitor incoming dividends.

Good point, I will look on Vanguard's site. I also monitor my bond spreadsheet for next dividend date and then cross-check with the accounts.

 

[TickTock]

I keep an indicator in my spreadsheet (color coded) for callable issues along with a callable date.

I have a bond spreadsheet with next dividend and next call columns, but I hadn't thought of color coding them. I'll add conditions to those columns to make it GREEN if it's before today's date and RED if after. Thanks!

 

[DrRoy]

Fidelity gives me a notice of about a month.

 

[jldavid47]

Yes, usually there is a notification of some sort, but sometime not. I know at Schwab they will append "*** Called mm/dd/yyy" of something similar to the description of the bond in your positions listing.

Not only that, Schwab emails me as soon as the call notice is issued which is normally 5 days before it is called but can vary depending on the bond or CD. I have trouble believing that Vanguard doesn't do the same or at least doesn't give you an option for that.

 

[imbatman]

great tips from everyone! I actually focus more on call date than maturity date so log that in my spreadsheet with time based formatting too. Fidelity gives alerts if you enable them (not on by default) and I have been getting call notices anywhere from 2 weeks to 2 days in advance.

On top of this, I have had a lot of extraordinary redemptions (ER), a few occurring mere months after issuance.....so now I am trying to avoid those too where possible.

 

[TickTock]

Woof! I got the date formatting pretty quickly (yay, internet!), but I wanted to turn back the call date column cells for my non-callable bonds, which I mark as "N/A", to no background color. It took about a dozen tries to work out the correct formula and order of rules application to get it right... Excel is quite finicky that way.

 

[grasshopper]

I am notified the next day.

A bond was recently redeemed in a Vanguard Brokerage account that you own or have authority to transact on

But I also have every alert that VG has.

 

[Sunset]

I keep an indicator in my spreadsheet (color coded) for callable issues along with a callable date.

I have one that is pretty much guaranteed to be called, JP Morgan Chase 5.6% CD maturity 9/6/24, issue 10/31/23, first call 3/6/24).

My decision on this one (when I bought it) was that I would be happy with 5.6% yield for the six months through a year.

I don't really think so, but let us know.

I just bought a new Chase CD paying 5.3% (1 yr, callable in 6 months) , so I wonder if 0.3% is enough for them to call it ?

 

[jazz4cash]

Surprised how many are reporting 1yr CD that are callable. I don’t really look at short term products except for liability matching in a few cases.

 

[copyright1997reloaded]

I don't really think so, but let us know.

I just bought a new Chase CD paying 5.3% (1 yr, callable in 6 months) , so I wonder if 0.3% is enough for them to call it ?

Just want to let you know you were correct on this! I was pleasantly surprised that it hasn't (yet) been called. Next stop 4/30/24. I also have a 5.7% JP Morgan Chase callable CD (matures 10/31/24, first call 4/30/24. Maybe even this will escape the call man's hatchet, but then again it is a 0.4% spread.

 

[njhowie]

Surprised how many are reporting 1yr CD that are callable. I don’t really look at short term products except for liability matching in a few cases.

Received call this morning on JPM 13-month, 5.5% maturity 7/16/2024, being called on 3/18.

 

[jazz4cash]

Received call this morning on JPM 13-month, 5.5% maturity 7/16/2024, being called on 3/18.

That reinforces my intent to stick with longer term issues. My Goldman Sachs 6.75% 2027 bond got called as expected and predicted by Freedom56 in the other thread.

 

[USGrant1962]

With Vanguard, for the two I've had called I received transaction notices, but nothing that actually said it as called.

 

[dmpi]

I keep an indicator in my spreadsheet (color coded) for callable issues along with a callable date.

I have one that is pretty much guaranteed to be called, JP Morgan Chase 5.6% CD maturity 9/6/24, issue 10/31/23, first call 3/6/24).

My decision on this one (when I bought it) was that I would be happy with 5.6% yield for the six months through a year.

I got the same 5.6% CD. Mine matures on 10/28/24. Mine can get called on the 28th of every month. Amazingly it has gone through Jan & Feb and it hasn't been called yet. Puzzling what logic they use to call these. I'll be amazed if I can make it all the way to Oct.

 

[PhotoAviation61]

Received call this morning on JPM 13-month, 5.5% maturity 7/16/2024, being called on 3/18.

Received call last night on a JPMorgan 15 month CD 5.45% mature 6/17/24, being called 3/17/24.

 

[Phroig]

My 6.3% FFCB, which is continuously callable starting March 8, unexpectedly didn't get called yesterday. They're probably waiting until Monday to spring it on me.

 

[Phroig]

My 6.3% FFCB, which is continuously callable starting March 8, unexpectedly didn't get called yesterday. They're probably waiting until Monday to spring it on me.

Nope, they didn't wait until Monday. Just got the notice.