Sml010 bonds

[BROOMDASHER]

Hi everyone this is first post.My TRA100 Bonds are due to be redeemed shortly.I am looking at buying some SML010 Bonds with the money.Thoughts for and against would be welcome. Thank you in advance

[GTM 3442]

Two years at 6% looks quite attractive. Thanks, I'll have a look at the details "under the hood".

[STr]

Two years at 6% looks quite attractive. Thanks, I'll have a look at the details "under the hood".

Following this thread - I know nothing about bonds - but have some savings that are achieving nothing sitting in the bank. I am looking for a "safe" / low risk investment as I am not sure I can ride out a massive downturn in the market (if it ever happened) and wait for the next bounce (age wise - not adrenaline wise). I think they would call this either being risk adverse or even "diversification" :eek2:.

[winner69]

Coupon at 3.73% pa selling for 6.00% ie paying $93.67 for a $100 of bonds

Fair bit company risk built in

[mcdongle]

Are Synlait making any money??

[peat]

Are Synlait making any money??

you'll know in more detail in 10 days

not much is the answer based on guidance.

and lots of debt.
I personally would find better companies to put my 'safe' debt investment into.

[winner69]

you'll know in more detail in 10 days

not much is the answer based on guidance.

and lots of debt.
I personally would find better companies to put my 'safe' debt investment into.

Quick skim through listed bonds SML010 about the only one yielding more than coupon rate (the 6.00% v 3.83%) …so market sees a fair bit of company risk.

Only three years to go …you’d have to think Synlait won’t default in that time frame

[peat]

Quick skim through listed bonds SML010 about the only one yielding more than coupon rate (the 6.00% v 3.83%) …so market sees a fair bit of company risk.

Only three years to go …you’d have to think Synlait won’t default in that time frame

well of course you'd hope so but we really havent seem much good stuff happen in the last few have we ?

I reiterate.
NOT a good bond investment. Bonds are meant to be safe. So that they perform opposite to your risky investments.

[peat]

Are Synlait making any money??

losing it

but of course their future is looking good eh? according to the guidance ;+)
But you really cant believe guidance unless the company has a long history of achieving it. Certainly not if you intend your investment to be safe. Because history tends to repeat.

[mcdongle]

Yes, My neighbour has decided to look for a new job. Not part of the redundancies so i will soon be out of the loop..

[Beagle]

SML010 is the ticker and they last traded at 5.35%. Not worth the risk at that yield. I am cautious on the whole bond market...yields are going higher in my opinion. For newbies to bond investments this might be worth a read https://www.thebalance.com/why-do-bond-prices-and-yields-move-in-opposite-directions-417082

[winner69]

Coupon at 3.73% pa selling for 6.00% ie paying $93.67 for a $100 of bonds

Fair bit company risk built in

One month on selling at $96.05. ….good capital gain

Market sees Synlait as less ‘risky’ now