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We're going to talk to Don from Oruinda, California.

Are you doing, Don?

Hi there.

Really well.

I have a bond that was just called, and so I now have some money.

I'm going to need to reinvest in some bonds.

And I have another one maturing at the end of July that I'll once again have to deal with having to reinvest it.

Would you recommend going with non-callable bonds as I'm trying to replace these, considering rates maybe coming down?

Well, if you have bonds that are callable, they, yeah, they can be replaced if rates drop considerably.

Now, the bigger question is, will they have the ability to refinance at lower rates?

Just because the Fed cuts rates does not necessarily mean that bond rates on the corporate

side will fall commensarily. Remember, that's just the short end. And most bond issuance

happens at least four years out, you know, three to four in that range

and oftentimes, you know, five, six, seven, ten years out and beyond.

So there's no guarantee that rates on those maturities will fall dramatically, especially

if lower bond, lower Fed funds rate,

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