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  1. #1
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    Default 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?

  2. #2
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    Quote Originally Posted by Bjauck View Post
    Wellington Int'l Airport Bonds at 2.XX%
    Will the interest rate compensate for the risk in a Covid World?
    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.

  3. #3
    Legend peat's Avatar
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    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.
    For clarity, nothing I say is advice....

  4. #4
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    Rate set at 2.5%. And scaling.

  5. #5
    Legend peat's Avatar
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    Quote Originally Posted by Grimy View Post
    Rate set at 2.5%. And scaling.
    un believable , wow there must be .a wall of money out there lookin for a home
    For clarity, nothing I say is advice....

  6. #6
    Legend peat's Avatar
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    2.5% will seem quite good soon with Orr talkin up the negative OCR scenario
    For clarity, nothing I say is advice....

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