Sbs bond

[NZSilver]

Has anyone applied, yield will be 7.6-7.8%

[mshierlaw]

Has anyone applied, yield will be 7.6-7.8%

i'm not a fan of 5 years fixed then 5 years floating, you have no idea what your return is going to be in the second half of the term.

Quite a few offers being packaged like this now, perhaps good for the issuer,

[Grimy]

7.62% and brokerage paid by SBS.
I'm tempted, but plenty of other opportunities about at present.

[GTM 3442]

With a credit rating of BBB it's one notch below what I regard as acceptable.

I see the conversion to a monthly rate reset after five years as the equivalent of a bank savings account which you can only get out of via the secondary market - and I'd pick that such a sale would be at less than face value.

I like the initial rate, but I see the second half as being a bit on the risky side for my taste.

[Grimy]

They may pay out after the initial 5.5 years.

[GTM 3442]

They may pay out after the initial 5.5 years.

Then again, why would they in a falling or static interest rate environment? Somewhat similar to Infratil buying back IFTHAs from time to time. Capital and debt management