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peat
19-03-2020, 07:02 PM
VCT080.NZ - VCT 15/06/22 5.70% Vector Limited Bonds

These are capital bonds and so... they don't actually have to pay you back for 'kin ages. maybe never, not sure.
But! there is some liquidity on market and the reset every 5 years and they will consider buying them off you or selling them on your behalf at that time.
So if you are a true bond investor they could be useful.
Better yield than some other bonds and a pretty highly stable company.

But recently the've got cheaper (better yield) and I'm wondering if that's a part of the corona era or what?
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mcdongle
20-03-2020, 01:05 PM
I think a lot of people want out of everything at the moment

Grimy
20-03-2020, 04:13 PM
I'm happy to hold onto mine

GTM 3442
20-03-2020, 10:43 PM
There's the same spike in yield across a whole lot of the NZDX. PFI, IFT, CNU SUM included. I think we're seeing the dreaded "flight to quality" - after all, there's a corresponding dip on GOV390 and GOV410. . .

peat
28-03-2020, 02:09 AM
thanks GTM
yes I can see it also in SUM010 except its even worse and they are now available around par.


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So the money thinks Vector is safer than SUM which is reasonable, but shows how SUM is now considered to have some chance of failure I guess.
I wouldn't have thought so myself but stranger things have happened.