Sbs bond

Has anyone applied, yield will be 7.6-7.8%

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Originally Posted by NZSilver

Has anyone applied, yield will be 7.6-7.8%

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i'm not a fan of 5 years fixed then 5 years floating, you have no idea what your return is going to be in the second half of the term.

Quite a few offers being packaged like this now, perhaps good for the issuer, :confused:

7.62% and brokerage paid by SBS.
I'm tempted, but plenty of other opportunities about at present.

With a credit rating of BBB it's one notch below what I regard as acceptable.

I see the conversion to a monthly rate reset after five years as the equivalent of a bank savings account which you can only get out of via the secondary market - and I'd pick that such a sale would be at less than face value.

I like the initial rate, but I see the second half as being a bit on the risky side for my taste.

They may pay out after the initial 5.5 years.

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Originally Posted by Grimy

They may pay out after the initial 5.5 years.

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Then again, why would they in a falling or static interest rate environment? Somewhat similar to Infratil buying back IFTHAs from time to time. Capital and debt management