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peat
20-08-2019, 05:06 PM
An interesting pair of bonds on offer , one for 7 years at 3.35% and the other for 10​ years but it resets every year after the first 18 months so if you're happy with a margin over the 1 year swap rate of 2.5% its got no major duration risk. It can still go to 0 of course but not below.

Grimy
22-08-2019, 08:14 AM
The 10 year bond is reset each year in December (after the first 15 months), with a margin of 2.5% - but they said it would not go lower than 2.5% even if the swap rate went under 0%.
Not enough to interest me this time.

peat
22-08-2019, 10:18 AM
The 10 year bond is reset each year in December (after the first 15 months), with a margin of 2.5% - but they said it would not go lower than 2.5% even if the swap rate went under 0%.
Not enough to interest me this time.
yes thanks for correcting me on that Grimy - it cant go to 0 even if 1 yr swap rate goes below 0

weird times we live in that we have to consider interest rates going negative!!

GTM 3442
20-09-2019, 04:20 PM
So the 2026 tranche have been allocated, but the 2029 tranche have had an extension until November.

What does that tell us? Anyone care to speculate?

GTM 3442
21-09-2019, 03:46 PM
So the 2026 tranche have been allocated, but the 2029 tranche have had an extension until November.

What does that tell us? Anyone care to speculate?

Ah. To accommodate rollovers from other IFT bonds.