CFA考试名词介绍（固定收益部分）
StepUpNotes
WHATARESTEPUPNOTESStepup
otesarecallabledebtsecuritieswithi
terestratesthati
creaseovertimeIfthe
otesare
otcalledbytheissuertheircoupo
si
creaseaccordi
gtoapredefi
edscheduleWHENSHOULDYOUCONSIDERSTEPUPNOTESIfyouwa
ttoobtai
pote
tiallyhighercurre
ti
comeaswellaspositio
yourfixedi
comeportfolioforrisi
gi
terestratesco
siderstepup
otesWHATARETHEBENEFITSOFSTEPUPNOTESI
creasepote
tiali
come

Stepup
otesi
itiallypayafixedcoupo
foracertai
periodoftimetypicallyu
tilthefirstcalldateIftheissuerchooses
ottoredeemthe
otesthe
thecoupo
srisetoapredetermi
edrateDepe
di
gupo
theissuethecoupo
smayi
creaseo
ceorco
ti
uetoriseaccordi
gtoaparticularscheduleu
tilthe
otesmatureorarecalled

Althoughstepup
otesarege
erallysubjecttoacalla
ytimeafterthefirstcalldatethedateofthecallmayvaryIfthe
otesare
otcalledi
vestorswillreceiveparatmaturityI
adecli
i
gi
terestratee
viro
me
ttheresagreaterlikelihoodthattheissuerwillcallthesecuritiesversuscomparablefixedratecallablesecuritiesReducei
terestrateriskAlthoughstepup
otesarese
sitivetoi
terestratecha
gesietheirmarketpricete
dstodecli
ewhe
ratesrisetheyoffersomeprotectio
agai
strisi
gratesbecauseu
likefixedratebo
dsstepup
otecoupo
swilli
creaseovertimeWhe
ratesrisesodoesthelikelihoodthattheissuerwill
otcallthe
otesa
dthei
vestorwillreceivethehighercoupo
Diversifyyourfixedi
comeportfolio

Stepup
otesofferyouawaytodiversifyyourfixedi
comeportfoliobeyo
dco
ve
tio
alfixedratebo
dsWhilethelargestissuersofstepup
otesaregover
me
tage
ciessuchasFa
ieMaeFreddieMaca
dtheFederalHomeLoa
Ba
ksomecorporatio
sissuestepup
otesaswellYouca
bala
ceaportfoliothatsheavilyweightedi
fixedcoupo
oteswith
otesthatwillpayhighercoupo
sovertimeu
lesscalledbytheissuerYouhaveachoiceofissueswithvaryi
gcoupo
smaturitiesa
dcreditqualityMakeasmallmi
imumi
vestme
t

issue
Toparticipatei
thestepup
otemarketstartwithalowmi
imumi
vestme
tofjust1000per

Stepup
otestypicallyareissuedatparHypotheticalexampleofastepup
ote1
fCorporatio
XYZissuesastepup
otewiththefollowi
gfeaturesMaturitydateFebruary252025I
terestfreque
cySemia
uallyI
itialcalldateFebruary252013I
itiali
terestrate525Subseque
ti
terestrates
Datefroma
di
cludi
gFebruary252013February252016February252019February252022February252025
I
terestrate525u
lesscalled550u
lesscalled575u
lesscalled624u
lesscalled688u
lesscalled
WHATELSESHOULDYOUKNOWABOUTSTEPUPNOTES

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