Bonus Bonds Closure

[Sgt Pepper]

The announcement today from ANZ that bonus Bonds would be closing also indicated near the end that bond holders would be entitled to a share of the reserves if they waited until the trust was legally terminated
Could someone more financially informed than me, explain how this is calculated. Does the Bonus Bond trust have a reserve ratio e.g. 3%. Does that mean if one has $1000 in bonds you would receive $30 added to redeemed bonds??

[King1212]

Watch out...all power companies, telco, retirement villages, banks..will all go up as bonus bonds money in

[iceman]

There is already a Bonus Bonds thread in the Off Market Discussions section : https://www.sharetrader.co.nz/showthread.php?11652-Bonus-Bonds/page2

[Getty]

There is already a Bonus Bonds thread in the Off Market Discussions section : https://www.sharetrader.co.nz/showthread.php?11652-Bonus-Bonds/page2

Ta,
I've put a post over there, wouldnt mind some feedback?

[nztx]

Watch out...all power companies, telco, retirement villages, banks..will all go up as bonus bonds money in

Be quite a few old ducks out there quite miffed out of killing BB off now -- infact with all the interest rate shafting going on -- there could be a fair bit of mattress stuffing going on ..

[nztx]

The announcement today from ANZ that bonus Bonds would be closing also indicated near the end that bond holders would be entitled to a share of the reserves if they waited until the trust was legally terminated
Could someone more financially informed than me, explain how this is calculated. Does the Bonus Bond trust have a reserve ratio e.g. 3%. Does that mean if one has $1000 in bonds you would receive $30 added to redeemed bonds??

Last ones standing it looks like share in the surplus but may wear some of the costs after a long wind down wait

All the billions in BB - anyone would have to wonder how it is that ANZ can now find it not worth while on lowering interest rates to keep it going..

I mean aren't they among the bundle of experts in the Sector at borrowing at 0 - 0.5% and extracting at least 3% on lending it out to another poor sucker ?

What sort of margin is that ? ;)

[moka]

Last ones standing it looks like share in the surplus but may wear some of the costs after a long wind down wait

All the billions in BB - anyone would have to wonder how it is that ANZ can now find it not worth while on lowering interest rates to keep it going..

I mean aren't they among the bundle of experts in the Sector at borrowing at 0 - 0.5% and extracting at least 3% on lending it out to another poor sucker ?

What sort of margin is that ? ;)
https://www.stuff.co.nz/business/mon...of-bonus-bonds (https://www.stuff.co.nz/business/money/122566018/why-nobody-should-mourn-the-end-of-bonus-bonds)
Why nobody should mourn the end of Bonus Bonds
In the 12 months to the end of March 2019, Bonus Bonds paid out $39.6 ​million in prizes on the $3.3 billion of $1 Bonus Bonds on issue.
The fees and expenses paid out on the scheme to ANZ was $40.7m​.

The Government is planning to introduce laws to require the “fair” conduct of banks. Each will have to operate under a “principle of fair conduct” by treating consumers “fairly, including by paying due regard to their interests”.

Bonus Bonds may have sat uncomfortably next to that legislation given the scheme cost more to run than it paid out in prizes.

[nztx]

ANZ certainly seem to be doing a decent job of forcing Captive Funds into lower interest / cost territory

Not so long ago all Retail Deposits with UDC which traditionally yielded higher than Bank rates for deposits was repaid
before that was sold off finally..

Now Bonus Bonds faces similar treatment & these funds will likely end up where, once refunded ? ;)

[macduffy]

I don't think that the (minimal) cost of Bonus Bonds funds is the reason for the closure. Bonus Bonds has been a great earner for, originally, the Post Office and for the last 30 odd years, ANZ. More likely, it's been the continuing criticism of the product and the smaller prize pool as a result of miniscule interest rates which has caused ANZ to act.

[nztx]

Thinking about exiting / Cashing up BB's ? .. Think again carefully on this -

Here's why the best time to own Bonus Bonds might be now

https://www.stuff.co.nz/business/opinion-analysis/300092552/heres-why-the-best-time-to-own-bonus-bonds-might-be-now

[Getty]

Be quite a few old ducks out there quite miffed out of killing BB off now -- infact with all the interest rate shafting going on -- there could be a fair bit of mattress stuffing going on ..

Where "Elsie" will people put their $3.3B now?

You say some old ducks will be stuffing their mattresses?
Is that a new version of "Grandma's feather bed" & will it hatch a "nestegg"?

Or, is it just "self Interest"?

Some old venerable gents may not realise they are coming into the money...
There may be some Bonuses, and some Bondage...

The fairydown "quilt" has taken on a new meaning.
They may become "noted" for their comfort.

PS, no Jokes about money shots please.

[nztx]

Where "Elsie" will people put their $3.3B now?

You say some old ducks will be stuffing their mattresses?
Is that a new version of "Grandma's feather bed" & will it hatch a "nestegg"?

Or, is it just "self Interest"?

Some old venerable gents may not realise they are coming into the money...
There may be some Bonuses, and some Bondage...

The fairydown "quilt" has taken on a new meaning.
They may become "noted" for their comfort.

PS, no Jokes about money shots please.

Okay no jokes about money shots then -- the Banks are probably rubbing their hands together in glee over another potential avalanche of cheap funds coming in, that they will pay F/all interest on to get use of in lowly savings or cheque accounts of the gullable.. is that not a large Money shot enough hoisted by the Aussie Bank on many many Kiwi's ? ;)