Genesis capital bond issue

[Beagle]

Yes, I see your point.

But in a rising interest rate environment, don't focus only on the potential downside of selling early, think also about the potential benefit of buying late.

Agreed 100%. My point though is always when considering a bond issue, first ask yourself in the underlying equity is a better bet.

[GTM 3442]

Agreed 100%. My point though is always when considering a bond issue, first ask yourself in the underlying equity is a better bet.

I can see we're coming from somewhat different directions here Beagle.

I'm buying to fit an asset allocation model, and return on capital is only one of the criteria.

There's also the effect on the average credit rating of the bond portfolio, maturity date for laddering, strength of the underlying company, all those sorts of things.

Example OCA - sold out of the shares , looking to buy the bonds - but only at the right price, or Infratil's IFTHA - that annual reset really makes a difference over the long haul on the right entry price.