VCT080.NZ - VCT 15/06/22 5.70% Vector Limited Bonds

[Aaron]

MCY020 The Final Terms sheet was a much better summary, I looked at the trust deed initially which is between Mercury and Guardian Trust so did not read.

A 2049 maturity. The idea to buy yield now in expectation of a financial market crash in the next few years and rates back down to zero. Sounds easy but gets scary if you get locked in to the long term maturities especially if credit markets and liquidity freeze up, capital will be tied up. Although if the volume on the NZDX list is daily a small fry like me might not have a problem.

https://www.nzx.com/markets/NZDX

Bought IPL010 yesterday at 7% as there was a small amount on offer and it matures next year.

The idea requires long term maturities but thought I would go through the process and maybe learn some ins and out. e.g. 21,000 on offer for a brief second when the broker said $98 dollars a unit I panicked as I was suddenly not sure if I was buying $20,580 or $2mill (21,000 * $98). Also brokerage of .07% with a minimum $35. I assumed anything less than $50,000 was $35 (35/.0007) but now not sure I had the decimal point in the right place fees likely to be $144 and minimum trade $5,000 not $50,000.

You live and learn.

Admittedly "share trader" site but wondered if anyone taking a punt on longer dated bonds assuming interest rates have peaked.