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  1. #41
    Advanced Member BIRMANBOY's Avatar
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    Know what you mean...... information on some of these bonds..especially the perpetuals can be difficult to find and also difficult to decipher. I can remember going backwards and forwards all over the place trying to sort it all out. Also the website link on DB didnt work..they certainly didnt make it user friendly. Thats a lesson for the powers that be..if you want a high strike rate you have to be access friendly and clear of jargon and legalspeak. Infratil is good about that..there website has an excellent section on debt securities/bonds etc.
    Quote Originally Posted by sharer View Post
    As the recent reset date approached i had another go at trying to understand WKSHA. After close study of the small print i realized i was too dumb to hold this investment. I just couldn't understand it really. It was near 78-ish on entry & high 90s on exit, so there was a worthwhile expansion of the capital sum as i set off in search of a more easily comprehended adventure elsewhere.

  2. #42
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    Bear in mind that these securities were issued at a different time, under different conditions to those of today. They were tailored for the times, attractive to prospective investors - on the surface, at least - and the demand was such that most sold readily. But you're right, subsequent events have made investors much more wary and such convoluted securities wouldn't fly these days.

  3. #43
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    Next reset date 15 June. By my calculation new rate (at today's 1 yr swap) would be 6.78%. The rate is set at 1yr swap on 15th.

  4. #44
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    For those that are interested the new step up rate is 6.82%. This should ensure support as yields on T/D still struggling. I notice ASB 5 yr rate is down to 4.7%.

  5. #45
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    Thanks for that KT. I don't have too many, but am reasonably comfortable with them.

  6. #46
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    Grimy
    You may feel even more comfortable. Fitch has upgraded Downer & Co. to BBB with a stable outlook. Not too bad for a company written off by many because of the Waratah train debacle(now on track to complete)

  7. #47
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    Anyone have any thoughts on where the interest rate on these might head to on the next reset,I sold mine out a few months ago but looking to get back into some fixed interest/resets again, with interest rates on the rise next year I guess these could go over 7%? I think the reset is 4.05% over 1 year swap rate,cheers

  8. #48
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    Well the current 1yr swap is 3.4% and 2yr 3.84%. If those proved to be accurate (and possibly higher) so looking at 7.89% on the current 2 yr. Medium to long term these should be a good buy right now still at a discount. Have been holding for some time and thru' the not so good time re Waratah issue but now looking a solid hold.

  9. #49
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    Based on current rates according to Interest.co.nz website yields now looking to be from now, 1yr-7.56% 2yr-8.00 3yr 8.27 4yr 8.47 5yr 8.63 7yr 8.91 10 9.16.

  10. #50
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    Watching swap rates on a daily basis is like getting a pay rise every day. Five days since last post and yields now 1yr- 7.63, 2yr 8.11, 3yr 8.35, 4 yr 8.5, 7yr 8.65. If trend is your friend every chance yields will continue to rise.

  11. #51
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    Quote Originally Posted by kiwitrev View Post
    Watching swap rates on a daily basis is like getting a pay rise every day. Five days since last post and yields now 1yr- 7.63, 2yr 8.11, 3yr 8.35, 4 yr 8.5, 7yr 8.65. If trend is your friend every chance yields will continue to rise.
    Thanks for info Kiwitrev,bought some back again at 99.5 a couple of weeks ago and may get a few more yet,looks a good play with a med- long view and not too shabby even at the next reset in June

  12. #52
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    Sure does. Not too many bond type issues that virtually guarantee a rising yield (in current and future conditons) when most bonds will be 'losing value' re rising interest rates.

  13. #53
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    It seems 'they' are on to it. Increased volume today at time of writing $232k (10 trades) which is much greater than the norm. Has recently traded as high as 102.50 and today 'tween 100.2 and 101

  14. #54
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    Quote Originally Posted by kiwitrev View Post
    It seems 'they' are on to it. Increased volume today at time of writing $232k (10 trades) which is much greater than the norm. Has recently traded as high as 102.50 and today 'tween 100.2 and 101
    Should have kept that cat in the bag

  15. #55
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    Kiwitrev notice when equities have a bad day the turnover volume of this stock increases significantly,kinda like a hedge fund,bought another small lot at 99.50
    Last edited by couta1; 27-03-2014 at 05:41 PM.

  16. #56
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    Couta
    I'm not clever enough to notice those type of movements. Don't think under par buying can last much longer given this bond's rising future yield. However have had to liquidate part of my holding to finance SPP in WHS (max. times two - Mr & Mrs) as am comfortable in medium/longer term on this stock. Am happy to pick up more WKSHA as funds allow.

  17. #57
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    Reset coming up in a few weeks time. If we stay on current 1 yr swap of 3.67%, we will see it set around 7.75% for the next year.

    Trading above par now though ($1.025).

  18. #58
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    Quote Originally Posted by Lizard View Post
    Reset coming up in a few weeks time. If we stay on current 1 yr swap of 3.67%, we will see it set around 7.75% for the next year.

    Trading above par now though ($1.025).
    Good medium to long term hold with a company that keeps winning significant contracts and stacking up its forward workload.
    Last edited by couta1; 02-06-2014 at 05:29 PM.

  19. #59
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    The reason they are as much above par is because on next div. due date (15 June) you will get the qtr div if owning the bond by 6 June thereby getting most of the premium back.

  20. #60
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    Rate reset to 7.95% for the year with dividends fully imputed, looking forward may be near 9% next year.

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