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Thread: Sbs bond

  1. #1
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    Default Sbs bond

    Has anyone applied, yield will be 7.6-7.8%

  2. #2
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    Quote Originally Posted by NZSilver View Post
    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,

  3. #3
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    7.62% and brokerage paid by SBS.
    I'm tempted, but plenty of other opportunities about at present.

  4. #4
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    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.

  5. #5
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    They may pay out after the initial 5.5 years.

  6. #6
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    Quote Originally Posted by Grimy View Post
    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

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