do callable bonds mostly get called on first call date?
So I always thought that for a bond to be called normally the rate being paid by the bond must be higher than the issuer can get by get by borrowing via a new issue (my gut also tells me it has to be lower by a good margin to make it worthwhile and cover the costs of new issue).
I have never dealt with callables beyond a textbook reading, however today I heard a reputable investment manager state that they often get called back on the first call date and that issuers can be expected to not disappoint investors and to do it….
Is there any truth to the above, is this limited to certain markets? It seems to defeat the point…