IFT 2026 and 2029

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.

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.

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Originally Posted by Grimy

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.

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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!!

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?

Quote:

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Originally Posted by GTM 3442

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?

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Ah. To accommodate rollovers from other IFT bonds.