I'm looking for a bit more background on a question that came up here: Our traders use some sort of Longstaff-Schwartz to calculate the optimal point when to call an issuer-callable bond.
My question is: Does anyone know whether a) it' s possible and b) how to exactly locate the optimal exercise point by systematically varying the autocall-level of an autocallable bond? I mean shouldn't the autocall PV coincide with the issuer-callable PV if the autocallable-level meets this optimal exercise level in an issuer-callable bond? My guess is that "left" and "right" of this optimum, the autocall-PV is always above the issuer-callable PV and coincides with its minimum when autocallable-PV = issuercallable PV? Happy to hear your thoughts on this.. Thomas