Grimy
You may feel even more comfortable. Fitch has upgraded Downer & Co. to BBB with a stable outlook. Not too bad for a company written off by many because of the Waratah train debacle(now on track to complete)
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Grimy
You may feel even more comfortable. Fitch has upgraded Downer & Co. to BBB with a stable outlook. Not too bad for a company written off by many because of the Waratah train debacle(now on track to complete)
Anyone have any thoughts on where the interest rate on these might head to on the next reset,I sold mine out a few months ago but looking to get back into some fixed interest/resets again, with interest rates on the rise next year I guess these could go over 7%? I think the reset is 4.05% over 1 year swap rate,cheers
Well the current 1yr swap is 3.4% and 2yr 3.84%. If those proved to be accurate (and possibly higher) so looking at 7.89% on the current 2 yr. Medium to long term these should be a good buy right now still at a discount. Have been holding for some time and thru' the not so good time re Waratah issue but now looking a solid hold.
Based on current rates according to Interest.co.nz website yields now looking to be from now, 1yr-7.56% 2yr-8.00 3yr 8.27 4yr 8.47 5yr 8.63 7yr 8.91 10 9.16.
Watching swap rates on a daily basis is like getting a pay rise every day. Five days since last post and yields now 1yr- 7.63, 2yr 8.11, 3yr 8.35, 4 yr 8.5, 7yr 8.65. If trend is your friend every chance yields will continue to rise.
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.