IFT - Infratil

[Bjauck]

Holding a number of blue chip bonds ... including CNU020 and IFT190. Noticed in the last couple of weeks the interest rates for bonds going up, presumably reflecting the markets concern that some of these companies might drop somewhat in their credit rating.

Interesting however to compare these rates ... the interest rates demanded for IFT190 (and other IFT bonds) basically went through the roof compared to other good corporate NZ bonds. Just wondering whether the market wants to tell us something?

yellow line: IFT190, blue line: CNU020

Attachment 11168

Is this just Wellington Airports - or do we need to take a bit better look at the other IFT investments as well?

Mixed signals from bonds?
I have WIA020 bonds and they are still at the same price as at the beginning of the month. I also have IFT240 bonds and their price has dropped by about -8% (or -6.5% net after the interest payment.

[BlackPeter]

Are you seeing/interpreting the the same rates I am seeing BP?
I am seeing IFT 120 interest rate here at 6 % with not a lot of volume.Does this mean a holder is trying trying to raise cash? or liquidating assets?

https://stocknessmonster.com/charts/ift190.nzx/
https://stocknessmonster.com/charts/cnu020.nzx/

I would have thought IFT would be purchasing these as well as doing the buy back?

Well, this is what I am seeing:IFT190.JPG

Interest rate now up to 6.3%, which means that somebody is desperate to sell. If you are really keen to sell a bond, you need to reduce its purchase price, which increases the interest rate the buyer gets. I know, it requires a bit of rethinking from buying shares. Shares are quoted in sell (or purchase-) price, while bonds are quoted in resulting interest rate.

Agree - volume is not that high (but not that low, either). Bond markets in NZ are in general not that liquid - i.e. read out of that what you want.

[kiora]

I saw 45% on your earlier post here
https://www.sharetrader.co.nz/attach...chmentid=11168
With no explanation what that was about.How would a reader interpret that?
And 6.3% on your latest post here
https://www.sharetrader.co.nz/attach...2&d=1585437757

I read that as a totally different story

[winner69]

I saw 45% on your earlier post here
https://www.sharetrader.co.nz/attach...chmentid=11168
With no explanation what that was about.How would a reader interpret that?
And 6.3% on your latest post here
https://www.sharetrader.co.nz/attach...2&d=1585437757

I read that as a totally different story

It’s gone from a yield of 3.8% to 6.3%

And 65% increase is a staggering increase in yield

But the value of the bond itself is only down a bit

And even on Friday the $1 face value things sold for $1.015

[BlackPeter]

I saw 45% on your earlier post here
https://www.sharetrader.co.nz/attach...chmentid=11168
With no explanation what that was about.How would a reader interpret that?
And 6.3% on your latest post here
https://www.sharetrader.co.nz/attach...2&d=1585437757

I read that as a totally different story

I assume you understand the difference between absolute and relative measure? 6.3% is the absolute return of this bond if you bought it last Friday.

45% was the relative change in its return since the start of the comparison.

Clear like mud?

[kiora]

From the 2019 Interim report
“A second key risk comes from the structure of the balance sheet. The big learning from the Global Financial Crisis (GFC) was the need to focus not so much on interest rate risk as liquidity risk, especially the ability to refinance debt when times get hard. A lot of Board time focuses on liquidity risk, the liquidity profile, and the ability to withstand a GFC-type even”

[Rowdy Flat]

An announcement from IFT due tomorrow.

Yesterday's 'Telcowatch' report for Q1 March 2020 shows For all three months in Q1 2020, both Skinny and Vodafone saw an increase in market share compared to the Q4 2019 quarter.While both 2degrees and Spark saw a decrease in their year-on-year market share growth in Q1 2020. However; Vodafone's market share growth has slowed markedly.

[bull....]

looks like they are taking a hit. lower dividend and lower guidance . a majority of there portfolio is going to be impacted by covid going forward

[mfd]

Expecting Wellington Airport to be running at 66% of previous levels by next April and 85% in April 2022. Most of their businesses impacted in some way - lower electricity use, less roaming income for Vodafone, retirement home resales expected to be impacted. CDC not so bad and Tilt have most of their revenue locked in and are throwing $169 million back to IFT by capital return.

Headwinds, but 30% down in 2 months and traded as much as ~45% down. I'd have thought they'd be fairly resilient compared to a lot of other companies.

[Joshuatree]

'Seriously challenged' Wellington Airport in talks with banks