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Thread: Sml010 bonds

  1. #1
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    Default Sml010 bonds

    Hi everyone this is first post.My TRA100 Bonds are due to be redeemed shortly.I am looking at buying some SML010 Bonds with the money.Thoughts for and against would be welcome. Thank you in advance

  2. #2
    Ignorant. Just ignorant.
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    Two years at 6% looks quite attractive. Thanks, I'll have a look at the details "under the hood".

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    Quote Originally Posted by GTM 3442 View Post
    Two years at 6% looks quite attractive. Thanks, I'll have a look at the details "under the hood".
    Following this thread - I know nothing about bonds - but have some savings that are achieving nothing sitting in the bank. I am looking for a "safe" / low risk investment as I am not sure I can ride out a massive downturn in the market (if it ever happened) and wait for the next bounce (age wise - not adrenaline wise). I think they would call this either being risk adverse or even "diversification" .

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    Speedy Az winner69's Avatar
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    Coupon at 3.73% pa selling for 6.00% ie paying $93.67 for a $100 of bonds

    Fair bit company risk built in
    . To say extreme valuations are “justified” is also to say that long-term market losses are “justified.” .

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    Are Synlait making any money??

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    Quote Originally Posted by mcdongle View Post
    Are Synlait making any money??
    you'll know in more detail in 10 days

    not much is the answer based on guidance.

    and lots of debt.
    I personally would find better companies to put my 'safe' debt investment into.
    For clarity, nothing I say is advice....

  7. #7
    Speedy Az winner69's Avatar
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    Quote Originally Posted by peat View Post
    you'll know in more detail in 10 days

    not much is the answer based on guidance.

    and lots of debt.
    I personally would find better companies to put my 'safe' debt investment into.
    Quick skim through listed bonds SML010 about the only one yielding more than coupon rate (the 6.00% v 3.83%) …so market sees a fair bit of company risk.

    Only three years to go …you’d have to think Synlait won’t default in that time frame
    . To say extreme valuations are “justified” is also to say that long-term market losses are “justified.” .

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    Quote Originally Posted by winner69 View Post
    Quick skim through listed bonds SML010 about the only one yielding more than coupon rate (the 6.00% v 3.83%) …so market sees a fair bit of company risk.

    Only three years to go …you’d have to think Synlait won’t default in that time frame
    well of course you'd hope so but we really havent seem much good stuff happen in the last few have we ?

    I reiterate.
    NOT a good bond investment. Bonds are meant to be safe. So that they perform opposite to your risky investments.
    For clarity, nothing I say is advice....

  9. #9
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    Quote Originally Posted by mcdongle View Post
    Are Synlait making any money??
    losing it

    but of course their future is looking good eh? according to the guidance ;+)
    But you really cant believe guidance unless the company has a long history of achieving it. Certainly not if you intend your investment to be safe. Because history tends to repeat.
    For clarity, nothing I say is advice....

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    Yes, My neighbour has decided to look for a new job. Not part of the redundancies so i will soon be out of the loop..

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