June 07, 2026

Understanding Step-Up Agency Bonds

31 minutes

Welcome to Bond Investment Mentor! In this episode, Chris breaks down callable step-up agency bonds. He explains how these agency bonds work and how these investments could deliver less than you expect. Chris also provides a framework for analyzing step-ups using Bloomberg screens and deciding whether they actually make sense for your institution's portfolio.

In this episode:

Market & Fed update (1:43)

Listener question: Discount MBS investments & a yield quirk (8:28)

Understanding callable agencies (13:40)

Callable step-up agency basics

How to evaluate them (Download: Pre-Purchase Due Diligence Checklists)

The challenges of call and coupon interaction

Developing a step-up investment approach

Boost your investment fundamentals with Bond Basics (Learn More) (26:55)

If you have questions about anything covered in this episode, please email me at Chris @ BondInvestmentMentor.com.

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