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Suppose it depends on your time frame. If you are looking at holding the Z bonds until maturity you may be better looking at perpetuals. Especially those that are likely to be bought back. But if you are only in it for the year or two then maybe the Z bonds will serve you well. Any sudden rise in OCR could lead to you taking a capital loss on them.
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Practically, they are fixed rate senior bonds and should be easily tradeable. Greenstone (their earlier issue) opened in October last year at 7.35% and now trade at a yield around 6.6%
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The market seems to be huge for these. ASB Securities limited them to 5000 per client. Hopefully the high demand will make them easily tradeable.
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Some new Z bonds out with less int.Fixed rate of 6.5% maturity 2019. How does that compare with anything else out there?thoughts appreciated. cheers JT
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Joshuatree As RABO BANK will give you 5.55% for 5 years & far better security. My thoughts is it not enough value to tie money up for 7 years 3 months after reading the prospectous
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Thanks POSSUM. Z bonds will be tradable on the NZDX.
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Joshuatree yes they can be traded but unless you have large amounts it is not practical 7 I do not think they will ever trade at a Premium. Possibly okay if you are going to buy a 100 grands worth but then you have to find a large buyer
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Still open so guess it hasn't been filled yet.
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Closed oversubscribed. Shows how little I know.
ZEL010.NZX
ZEL
13/08/2012 15:45
LISTING
REL: 1545 HRS Z Energy Limited
LISTING: ZEL: Z Energy bond offer closes oversubscribed at $135 million
Z Energy Limited ('Z Energy') closed its retail bond offer on 10 August 2012,
having successfully raised $135 million (which includes $35 million in
oversubscriptions).
End CA:00225883 For:ZEL Type:LISTING Time:2012-08-13 15:45:14
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ZEL030 new bonds (6.5%) trading now, @ 6.15%