CD's being called before maturity

[ua_guy]

Not surprisingly, a callable CD issued by JPMorgan Chase at 5.65 is being called before its maturity date, which is 3 months from now. I understand the how and the why, just haven't had it happen before. I also don't remember CD rates being this high since I wasn't old enough to invest. But it's not like that rate is astonishingly high compared to what can be found today.

Anyone else seeing their CD's being called?

[james.hendrickson]

Man...I haven't heard of that in years.

[disneysteve]

I only own one callable bond but the call date isn’t until 2029. I’ve otherwise avoided callable issues.

[QuarterMillionMan]

I've only had a short position being called once but I can't recall the specifics.

[srblanco7]

Not surprisingly, a callable CD issued by JPMorgan Chase at 5.65 is being called before its maturity date, which is 3 months from now. I understand the how and the why, just haven't had it happen before. I also don't remember CD rates being this high since I wasn't old enough to invest. But it's not like that rate is astonishingly high compared to what can be found today.

Anyone else seeing their CD's being called?

Have never owned a callable CD or bond. I am intrigued by your CD being called only 3 months before maturity. The only rationale that I can see is that JPM is forecasting a near term Fed interest rate cut (which would seem to be consistent with the market consensus).

[disneysteve]

Have never owned a callable CD or bond. I am intrigued by your CD being called only 3 months before maturity. The only rationale that I can see is that JPM is forecasting a near term Fed interest rate cut (which would seem to be consistent with the market consensus).

I’m sure that’s exactly why. Financial firms are already pricing in a rate cut even though it hasn’t happened yet. 3 months might not sound like much but think about how many millions they may have out there paying 5.65%. Calling those early could save them a bundle.