sharetrader
Page 3 of 6 FirstFirst 123456 LastLast
Results 31 to 45 of 82
  1. #31
    Member sharer's Avatar
    Join Date
    May 2007
    Location
    Wellington
    Posts
    357

    Default

    Well BirmanBoy i have to agree with you that a return in the vicinity of 8% is certainly quite respectable these days.
    And when i read that advice: "believe half of what you see and none of what you hear", i couldn't help wondering if your old man and mine might
    even have been cousins, the way things often work out in Kiwiland, because mine said exactly the same thing!

  2. #32
    Advanced Member BIRMANBOY's Avatar
    Join Date
    May 2011
    Location
    Wellington
    Posts
    1,562

    Default

    So I see these have now gone from 7200 to 7800 in the space of one month. Would seem that there is some interest in these and probably still some way to go as well. Current pricing provides 8.46% return.

  3. #33
    Share Collector
    Join Date
    Mar 2005
    Location
    Porirua
    Posts
    3,866

    Default

    Was thinking of putting the money from the NPX020's in here when it comes back next month.

  4. #34
    Advanced Member BIRMANBOY's Avatar
    Join Date
    May 2011
    Location
    Wellington
    Posts
    1,562

    Default

    I see these are now trading at 8000...where they seem to have been somewhat settled. This is producing a gross return of 8.2% which is quite a handy yield. One interesting thing is since they are not heavily traded every now and then when the stars and moons colide you can put in a cheeky offer as someone did recently at 7610. These reset every year now so yield will no doubt drop down from 6.6% but when you consider Kiwi Bank is offering 5.88% on its recent bond offer..there is still good value in these Works (IMHO)

  5. #35
    Member
    Join Date
    Mar 2010
    Posts
    455

    Default

    B.Boy
    You will be feeling pretty good, trading today almost to 90% on better than expected DOW 6mth result-up 7% on ASX but was up 14% in early trade. Interesting to note that vol. on DX at $180k the greatest for some time tells me punters banking on redemption into the future. Any similar views out there?

  6. #36
    Advanced Member BIRMANBOY's Avatar
    Join Date
    May 2011
    Location
    Wellington
    Posts
    1,562

    Default

    Vindicated not terminated...yes KT obviously there has been some continuing demand on these. I bought in at 7210 so so far has been very good.. I have an assortment of 10 bonds in the portfolio and this was the "riskiest" since I couldnt quite figure out why it was selling at such a discount but I felt underlying fundamentals of Downer were strong. Obviously they dropped the % down to 6.6% and also the reset is done annually so my guess is the next year will see a chunk taken away from the 6.6%. However the current yield is great and the worst case scenario is the reset rate will always be a couple of %points over the cash rate so while the interest rates remain low looks a steady earner. I cant see them redeeming them at full face value since they have been selling at a discount forever...they might do an Infratil and be buying them back on the market..hard to know.
    Quote Originally Posted by kiwitrev View Post
    B.Boy
    You will be feeling pretty good, trading today almost to 90% on better than expected DOW 6mth result-up 7% on ASX but was up 14% in early trade. Interesting to note that vol. on DX at $180k the greatest for some time tells me punters banking on redemption into the future. Any similar views out there?

  7. #37
    Member
    Join Date
    Mar 2010
    Posts
    455

    Default

    Hi guys/gals
    Just referring to the half year report which I ignored when anncd but just received in the mail. Could someone more knowledgable than I explain the situation regarding R/E of almost $3m. These have no doubt built up resulting from lower divvy paid since reset. As this security is effectively a preferential share in Downer NZ who would ultimately be the beneficiary of any R/E

  8. #38
    Member
    Join Date
    May 2003
    Location
    Wellington, , New Zealand.
    Posts
    131

    Default

    yes kiwitrev Downer as the owner of the ordinary shares is the residual owner of the RE. its just that over the accounting period income on the loans to Downer exceeded the fixed dividends payable on the roads.
    Success is the ability to go from one failure to another with no loss of enthusiasm

  9. #39
    Member
    Join Date
    Mar 2010
    Posts
    455

    Default

    Heavy trading today, buyers have gradually chased this bond to now 95.5. Barring any unforseen circumstance
    and with interest rates remaining low for the forseeable near term no reason why these bonds sholud not get back
    to parity (and maybe beyond - he hopes).

  10. #40
    Member sharer's Avatar
    Join Date
    May 2007
    Location
    Wellington
    Posts
    357

    Default

    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.

  11. #41
    Advanced Member BIRMANBOY's Avatar
    Join Date
    May 2011
    Location
    Wellington
    Posts
    1,562

    Default

    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.

  12. #42
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    6,761

    Default

    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.

  13. #43
    Member
    Join Date
    Mar 2010
    Posts
    455

    Default

    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.

  14. #44
    Member
    Join Date
    Mar 2010
    Posts
    455

    Default

    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%.

  15. #45
    Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    364

    Default

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

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •