Callable Agency Bonds

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jcigogne's picture
Status: Member (Offline)
Joined: Mar 13 2010
Posts: 1
Callable Agency Bonds

I am interested in learning more about these instruments. It seems as if many of them are called well before their maturity dates. Thus, in effect, it appears that there is an opportunity to garner short to medium term yields that are well in excess of current market yields for short term debt. True, these bonds are not as secure as t-notes or t-bonds, but as we have seen with Fanny Mae and Freddie Mac, the government - or at least the present powers that be - has stepped to provide support. If there were a way to predict when these bonds will be called, then perhaps one could profit from the yield differential. 

Merci en avance for any thoughts on this apparent opportunity.

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