Genesis Capital Bonds

[winner69]

Xerof - not the best look is it, ESP for the retail investors

The same investors who be flooded with shiny prospectuses and glitzy tv ads asking them to front up in an IPO

[macduffy]

I'm with BIRMANBOY.

Can't see what the fuss is about. Genesis is only exercising its rights and can't be expected to pay more than the going rate for funding. And anyone who bought on market 6 or 12 months ago was, or should have been aware, that the bonds were subject to re-pricing and that interest rates were low. At least holders have the right to redeem, unlike many perpetual, re-pricing issues.

[BIRMANBOY]

I would have preferred it to run forever...however recognise that they would be fools to keep paying 8.5% when cheaper options were available. Its a big world out there..lots of options for getting returns....but NOT at a safe 8.5% so I do what every pragmatic investor does...look for the next best available safe option and move on. In the meantime I thank them for their contribution. As for people who bought without weighing options, reading the prospectus and paying the added costs on secondary market I say thats a relatively inexpensive lesson to learn since they got most of their money back plus have had 8.5% interest.

So you are happy to lose your 8.5% running yield? Where do you plan to reinvest in a similar risk instrument and achieve 8.5%

How do you think those who invested in these bonds only 6 months ago are feeling, having paid $1.05 to $1.10, only to have them repaid early for $1.00?

I realise its quite within their rights to take this action, but it is just another kick in the guts for the retail investor (accepting you don't seem to be aggrieved by your loss of income stream)