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  1. #1
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    Default Genesis Capital Bonds

    The instrument notation of 'unsecured, subordinated, redeemable, cumulative interest bearing capital bonds' seems to be quite a mouthful.

    I haven't seen any broker recommend it other than highlight the basic points and GE's performance and plans for the capital raising.

    Perhaps they are all frightened of the new financial advisor's regulations and want us all to come to our own conclusions but still indirectly pay their brokeridge.

    I think it's a good offer and will be taking it up.
    A quote attributed to Margaret Thatcher goes along the lines of
    "The problem with socialism is that eventually you run out of other people's money."

  2. #2
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    Waiuta To Many fish hooks If interest rates go up theymake you wait Thirty years to get your money & if the go down they pay you out whenever they can. Have not looked at fine detail yet. But I think it will go in the Trash Can
    Possum The Cat

  3. #3
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    In todays ODT, Genisis are saying after a book build process, there will be no public allocation. So thherefore suppose only way to get them is through Craigs/ANZ/Westpac/Forsyth Barr/First NZ capital

  4. #4
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    Default

    Quote Originally Posted by POSSUM THE CAT View Post
    Thirty years to get your money & if the go down they pay you out whenever they can.
    And they have been given a junk rating.

    I am pretty sure I read one article saying not to touch them - Was it a Gaynor article? he normally calls it like he sees it.
    Free delivery worldwide with Book Depository http://www.bookdepository.co.uk

  5. #5
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    Default

    I am buying a small parcel...

    I am happy the term sheet and feel they are priced attractively/fairly. There are always some hooks, but these don't seem too bad. There are step up margins in place and the fact it reprices of the 5 year swap means it is unlikely to follow the likes of Rabo's pref shares down to $70 (which reprice off the one year).

    I also feel Genesis are unlikely to go bankrupt anytime soon. I saw the BB- S&P rating. I suppose it is a reflection of their subordination (they are very close to equity in nature so BB- is probably quite good). I prefer to focus on the BBB+ rating of Genesis.

    I couldn't find any comment on them from Gaynor or any other media types. I found the link below, but I would take it with a pinch of salt. Sounds like it was written by a broker...

    http://www.depositrates.co.nz/news/9...th-buying.html

    Would be interested to hear the views of any FI/pref share experts out there.

  6. #6
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    Chris Lees website has a bit about it in taking stock & market news. 7-10 April. He thinks it is a pretty good addition to a portfolio and would be unlikely to go beyond 10 years

  7. #7
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    P@R If Criss Lee recommends them surely that Means donot touch with bargepole For anyone with some Nouse
    Possum The Cat

  8. #8
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    Gee Possum thats a bit harsh - reads like you had a few though!

  9. #9
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    Tim23 No I had never bought any SCF or Hanover got out of Strategic when Finegan from Hanover went there & they were wanting you to renew well in advance of maturity at premium Interest rates & a prospectous with no mention of change of Management.
    18 Months later I heard of Chris Lee& he was still recomending all three. Despite news paper talks about a big hole in the ground in Ponsonby financed by Strategic. Had a look at SCF is prospectous & the number of inter party deals & loans was enough for someone with two years Secondry education. Had one meeting with a financial planner complements of Westpac Bank & he was a bigger idiot in my opinion than Chris Lee & that is really saying something. All the financial planner paid by Westpac as a bonus to business clients was how much commision he would get. I asked him for some idea of what he would do for us. In other words some idea of expertise. So he sent us a pile of prospectous & nothing else. So my reading of recommendations & investments advice from Chris Lee's web site. I thought he was just about as big of an idiot as the man from Westpac. These Are just my personal opinions.
    Last edited by POSSUM THE CAT; 18-04-2011 at 12:06 PM.
    Possum The Cat

  10. #10
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    Default

    Well, there are some interesting replies and apart from doing your own research and listening to others you've still got to take a bit of a punt. And that comes down to how you manage the risk. Advisors are increasingly gunshy and more and more being guarded about any recommendations other than Government Stock.
    A quote attributed to Margaret Thatcher goes along the lines of
    "The problem with socialism is that eventually you run out of other people's money."

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