Genesis Capital Bonds

[Xerof]

If it looks like equity (and S&P seem to be able to count it as equity) it bloody well might as well be

If that's the case, it's badly mispriced, and once again the investing public are ripped off by the broker community

I'm out

[karen1]

Interesting read: http://www.interest.co.nz/news/52976...-tekapo-power-

[Penfold]

I see today that Direct Broking has exhausted their allocation to investors. With the 5 year swap falling, the margin looks set to be close to 400bps.

[CJ]

I see today that Direct Broking has exhausted their allocation to investors. With the 5 year swap falling, the margin looks set to be close to 400bps.

They must be able to get cheaper funding than that. They are effectively govt guaranteed so why dont they borrow via the government (or is the govt already borrowing to much - dont want to get into this arguement on this thread).

[POSSUM THE CAT]

CJ then they could not float it

[sharer]

The earlier sceptical comments above seem to have been right.
GPLFA have been effectively withdrawn, or else re-issued at max 5.8% .
My trust fund has decided to sit tight for the repaid capital.
There seem to be several likely upcoming opportunities this year for alternative reinvestments.

[BIRMANBOY]

2 years of 8.5%......good use of money and no loss.

The earlier sceptical comments above seem to have been right.
GPLFA have been effectively withdrawn, or else re-issued at max 5.8% .
My trust fund has decided to sit tight for the repaid capital.
There seem to be several likely upcoming opportunities this year for alternative reinvestments.

[Xerof]

Heads they win, tails you lose. Another dreadful example of treating their financiers (you guys who bought these) like 'flys'


Giving up 8.5 for 5.8 looks a really good deal.....for them

pity anyone who bought on the secondary market at a premium, they will only get 100 cents back.

[BIRMANBOY]

As I said we have had 2 years of 8.5% and are getting 100% of our capital back.....so dont know how you could call it dreadfull unless you are somehow trying to compare it to something ?else. People who buy bonds want security and give up the idea of "large" growth and gains. It did what it said it would and I for one understand what they did as per prospectus. Since TD were/are paying 4% plus minus 8.5% is a great return. You have the option of renewing if you want but my guess is most holders wont and will cash up. Buying on secondary market is a bit riskier but if you buy at the right time sometimes you can get a better buy...its like shares...theres always a bit of a timing issue. Buying at onset has never been bad for me. I'll finance anyone as reliable as an energy anytime willingly..especially at that rate. You cant blame them for wanting to control their debt costs. Thats why they have teams of lawyers and finance wizards write these prospectus.

Heads they win, tails you lose. Another dreadful example of treating their financiers (you guys who bought these) like 'flys'


Giving up 8.5 for 5.8 looks a really good deal.....for them

pity anyone who bought on the secondary market at a premium, they will only get 100 cents back.

[Xerof]

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)