What is a Kicker Bond?
“The general strategy is simple; invest your funds in high quality bonds, which are callable in the short term, and have a relatively short final maturity (approx. fifteen years or less). These bonds are purchased with a yield to the first call, typically better than prevailing money market rates. Ultimately the objective is to hold on to the bonds past the first call and have the yield kick-up to a larger yield after each successive call date and finally to maturity.”