WIA Wellington Airport - New Issue 6-yr Bonds

Wellington Int'l Airport Bonds at 2.XX%
Will the interest rate compensate for the risk in a Covid World?

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Originally Posted by Bjauck

Wellington Int'l Airport Bonds at 2.XX%
Will the interest rate compensate for the risk in a Covid World?

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Good question. Company is credit rated BBB (With a negative outlook). No surprise there in today's circumstances! Guaranteeing Group, which doesn't include shareholders Infratil or Wgtn C C doesn't appear to add confidence or strength.

its not too bad really and about right in my opinion and that would depend on whether it is finally priced at the minimum or it could be 2.7 or 2.8 . There is some risk and its a bit hard to quantify but its a major NZ airport for domestic purposes so hardly likely to fail. Has it lost a lot from Covid. Maybe not - since it was never a decent international airport.

And so if the rate is in the high twos thats about 1% more than a TD or 50% more (in income generating terms).
And we have all given up on inflation havent we? So there may even be some capital gains to be had if ZIRP ZIRPITY MCZIRPFACE shows up.

Rate set at 2.5%. And scaling.

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Originally Posted by Grimy

Rate set at 2.5%. And scaling.

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un believable , wow there must be .a wall of money out there lookin for a home

2.5% will seem quite good soon with Orr talkin up the negative OCR scenario