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Join Date: Apr 2002
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Does anyone dabble in Agency/GSE bonds?

I never have, but there are some attractive yields being offered. The current ones do not have call protection like some previous offerings, but I wonder what the odds and past history is on them actually being called early? Break out yer crystal ball ..,. Whaddaya think?

Old 11-24-2022, 02:15 AM
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Join Date: Apr 2001
Location: Linn County, Oregon
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What's a GSE bond?

(edit) Just did a search. To each his own. Not for me.
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Last edited by pwd72s; 11-24-2022 at 11:22 AM..
Old 11-24-2022, 11:19 AM
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had them in the 90's ginny may

very variable in amounts paid as it was a mortgage pool
some loans paid off on sale or defaulted [same effect to the bond holder capital returned in a lump sum ]
other months just the standard interest was paid but far higher then bank CDs rates

regular payments of an unknown amount

also as the payouts happen your balance and future payments reduce

normal fixed bonds could be better if you want known income paid regularly
Old 11-24-2022, 11:37 AM
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Thanks guys! I'm in the process of binge shopping for yield over the next few months, and really looking to lock in for longer terms (i.e. 10 years).

Paul, I think the only real risk is that the bonds will be called early (and I can live with that) as I am looking at a FFCB (Federal Farm Credit Banks) bond that looks attractive, although I can certainly find corporate bonds with similar yields (call protected) for 10 years also and I am diversifying for sure.

Coupon on these is a guaranteed 6.3%.
Online CDs (callable) are around 5ish.
US 10 yr treasury notes are below 4 right now.

Think I'm gonna dabble some.... Just a bit

The remainder of my safer yield purchases will be invested in Bitcoins, Lottery Tickets, and Flying Cows

I do wish these were call protected ... There are some out there with similar coupon rates, but damn.... they are proud, proud, proud of tho$e bonds.... too rich for me.


Last edited by KFC911; 11-24-2022 at 12:44 PM..
Old 11-24-2022, 12:40 PM
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