Thanks for info Kiwitrev,bought some back again at 99.5 a couple of weeks ago and may get a few more yet,looks a good play with a med- long view and not too shabby even at the next reset in June
Printable View
Sure does. Not too many bond type issues that virtually guarantee a rising yield (in current and future conditons) when most bonds will be 'losing value' re rising interest rates.
It seems 'they' are on to it. Increased volume today at time of writing $232k (10 trades) which is much greater than the norm. Has recently traded as high as 102.50 and today 'tween 100.2 and 101
Kiwitrev notice when equities have a bad day the turnover volume of this stock increases significantly,kinda like a hedge fund,bought another small lot at 99.50:cool:
Couta
I'm not clever enough to notice those type of movements. Don't think under par buying can last much longer given this bond's rising future yield. However have had to liquidate part of my holding to finance SPP in WHS (max. times two - Mr & Mrs) as am comfortable in medium/longer term on this stock. Am happy to pick up more WKSHA as funds allow.
Reset coming up in a few weeks time. If we stay on current 1 yr swap of 3.67%, we will see it set around 7.75% for the next year.
Trading above par now though ($1.025).
The reason they are as much above par is because on next div. due date (15 June) you will get the qtr div if owning the bond by 6 June thereby getting most of the premium back.
Rate reset to 7.95% for the year with dividends fully imputed, looking forward may be near 9% next year.