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  1. #1
    Guru peat's Avatar
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    Aug 2004
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    Whanganui, New Zealand.
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    Default IFT 2026 and 2029

    An interesting pair of bonds on offer , one for 7 years at 3.35% and the other for 10​ years but it resets every year after the first 18 months so if you're happy with a margin over the 1 year swap rate of 2.5% its got no major duration risk. It can still go to 0 of course but not below.
    For clarity, nothing I say is advice....

  2. #2
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    May 2007
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    Auckland, , New Zealand.
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    Default

    The 10 year bond is reset each year in December (after the first 15 months), with a margin of 2.5% - but they said it would not go lower than 2.5% even if the swap rate went under 0%.
    Not enough to interest me this time.

  3. #3
    Guru peat's Avatar
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    Aug 2004
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    Whanganui, New Zealand.
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    Default

    Quote Originally Posted by Grimy View Post
    The 10 year bond is reset each year in December (after the first 15 months), with a margin of 2.5% - but they said it would not go lower than 2.5% even if the swap rate went under 0%.
    Not enough to interest me this time.
    yes thanks for correcting me on that Grimy - it cant go to 0 even if 1 yr swap rate goes below 0

    weird times we live in that we have to consider interest rates going negative!!
    For clarity, nothing I say is advice....

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