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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.

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