Roger - I dont follow bonds but am starting to look into them for various reasons.

The Contact bonds are extremely long dated so they will get the benefit of the interest rate set or if that is above market at the time, can redeem them. ie. they get the best of both worlds.

I would say Infratil bonds are just as secure as Contacts. whetehr sahres are the better option depends on how the markets go.

Possum - Bonds will normally be one rung of the bottem wont they as they get tehir cheap debt from banks who take first security leaving bonds ranking behind them.