Corporate and Agency GSE Bond DEALS and NEW ISSUES

[PhotoAviation61]

New issue on FIDO.

DEUTSCHE BK AG NOTE
6.00000% 02/28/2039
25161FRA8

First call 2/28/26

 

[jldavid47]

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 (callable every 3 months starting 4/26/24)
FHLB 6.50% maturing 03/25/2044 (callable monthly starting 4/25/24)

It is unclear whether I will get a call notice for these because of my experience with another longer-term FHLB bond. I have one maturing 9/1/2033 paying 6.4% that has been continuously callable since 3/1/24 and has yet to be called. If they aren't calling that one, then I'm not sure why they would call the 3 referenced above. If they get called, however, I am totally fine with that as new callable FHLB bonds of 10 and 20 year durations are still paying 6%-6.5% and I'll simply reload.

I'm perfectly fine holding all of these for as long as possible. I'll follow up in a few days as I will know by Monday whether they will be called as all of them require 5 days notice.

 

[PhotoAviation61]

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 (callable every 3 months starting 4/26/24)
FHLB 6.50% maturing 03/25/2044 (callable monthly starting 4/25/24)

It is unclear whether I will get a call notice for these because of my experience with another longer-term FHLB bond. I have one maturing 9/1/2033 paying 6.4% that has been continuously callable since 3/1/24 and has yet to be called. If they aren't calling that one, then I'm not sure why they would call the 3 referenced above. If they get called, however, I am totally fine with that as new callable FHLB bonds of 10 and 20 year durations are still paying 6%-6.5% and I'll simply reload.

I'm perfectly fine holding all of these for as long as possible. I'll follow up in a few days as I will know by Monday whether they will be called as all of them require 5 days notice.

Just an FYI, there is a new issue FHLB bond on Fidelity that is a 20 year with a 6% coupon but what is a bit different about it is that it has a 2 year no call. I haven't seen that long of a no call period with the higher coupon agency bonds.

3130B0XW4

 

[pb4uski]

Thanks for the heads up. Looks good. Bot some as I was underweight in high quality bonds and this is a good one, at least for the next 2 years. I'm guessing that it will price as a 2-year so if rates decrease there isn't much upside due to the call, but that's ok... 6% for 2-years with no credit risk is fine.

 

[jldavid47]

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 (callable every 3 months starting 4/26/24)
FHLB 6.50% maturing 03/25/2044 (callable monthly starting 4/25/24)

It is unclear whether I will get a call notice for these because of my experience with another longer-term FHLB bond. I have one maturing 9/1/2033 paying 6.4% that has been continuously callable since 3/1/24 and has yet to be called. If they aren't calling that one, then I'm not sure why they would call the 3 referenced above. If they get called, however, I am totally fine with that as new callable FHLB bonds of 10 and 20 year durations are still paying 6%-6.5% and I'll simply reload.

I'm perfectly fine holding all of these for as long as possible. I'll follow up in a few days as I will know by Monday whether they will be called as all of them require 5 days notice.

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 continuously callable after a certain date will show no history at all unless the security is called.

 

[jldavid47]

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 this week which will probably pay 6.4%-6.5%.

 

[imbatman]

Yeah my 7% FHLB (3130AXGD4) was called last week and just got a call notice on my CAPONE 6.6% (SOFR + 1.35%) 14040HCR4.

 

[jldavid47]

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 this week which will probably pay 6.4%-6.5%.

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.