Gses And Their Likelihood Of Being Called Early

uac2
  |     |   6 posts since 2022

A little bit off topic but with brokered CDs currently stalled at the 3.5% level there are some very attractive Federal Farm Credit Bonds available. Almost all of them are callable within a year.

I was wondering if history gives any indication of whether FFCBs are less or more likely to be called then callable CDs or Corporate Bonds everything else being equal.

I’m trying my best to avoid anything that is callable or has a high probability of being called between now and 2027.



Answers
planxy
  |     |   140 posts since 2013
With interest rates likely to continue rising beyond the point of pain to borrowers, it is rather unlikely that bonds in general will be called for a while. I tried finding if there were any" recently called" bonds of these issuer(s) on their website and there seemed to be none at all. [www.farmcreditfunding.com/ffcb_live/dataCenter/termDebtActivity.html].


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