IFTHA Infratil Perpetuals

[macduffy]

Great post, Liz!

No, I've got no idea what the answer is to your question - something akin to the meaning of life! My hunch is that we won't know until future events play out and that IFT have just got lucky with abnormally low rates - as indeed it could be said for any borrower paying market rates these days while inflation continues merrily along. I don't think we can credit IFT's Treasury with any particular foresight in this regard, however much we may admire their management. (I do)

It also makes a lot of sense, of course, for the company to buy back and retire these securities at current prices, assuming that they can replace the funds at a comparable rate. Can't blame them for doing this but it doesn't necessarily mean that it's also a good buy for private investors unless one is convinced that these low rates are a cyclical or transitory phenomenon.