Beginners

[Grimy]

Not that this answers your question, but rate has been set at 7.08%

[NZSilver]

Thanks Grimy, still not sure what indicative issue margin means but I guess you really look at the minimum interest rate. 7+% is pretty good

[Snow Leopard]

Base Rate: Read this >> https://www.interest.co.nz/charts/in...tes/swap-rates << and look at the 7 year chart as to a good indication of what the current rate is.

Indicative Issue Margin: The extra amount above the base rate Infratil reckoned they would have to pay to get enough buyers.
Note that "The actual Issue Margin may be above, within or below the indicative range" means we will pay as little as we must.

Minimum Interest Rate: The least rate that we will offer [ so you can see that we are not dreaming and it is worth having a look ].

[Grimy]

The Minimum Interest Rate has been set at 7.08% per annum. This is equal to the sum of the Issue Margin of 2.40% per annum and the Base Rate on the Rate Set Date of 4.68% per annum.

[NZSilver]

Thanks for all the above info.

I see Precinct property is offering a bond. My initial thoughts without much research is I would be a little reluctant with this bond as there could be more pain with office property making it a little more risky (vs the likes of infratil).

[Grimy]

https://www.chrislee.co.nz/taking-stock
Today's Taking Stock has a little bit on the precinct offer.

[Grimy]

The interest rate has been set at 7.56% for the 3-year term, and 7.53% for the 4-year term.

[NZSilver]

Thanks that Chris lee stock take was interesting. I didn't end up buying and bonds but pretty tidy interest rate.

[NZSilver]

Synlait milk is trading at 18%, so you will get an 18%yield to maturity? But risk Capita loss?