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  1. #21
    Ignorant. Just ignorant.
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    Personally, I'm surprised at the way the price has held up. Percieved premium for quality ?

  2. #22
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    Rabobank has given notice of its intention to redeem the RBOHA capital securities on 9 October 2017, the first business day following the "First Call Date". I assume they are pre-empting an anticipated interest rate rise at the next rate reset, but at the current rate of 2.8825% I'm more than happy to have my small holding repaid.

  3. #23
    Legend peat's Avatar
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    Quote Originally Posted by macduffy View Post
    Rabobank has given notice of its intention to redeem the RBOHA capital securities on 9 October 2017, the first business day following the "First Call Date". I assume they are pre-empting an anticipated interest rate rise at the next rate reset, but at the current rate of 2.8825% I'm more than happy to have my small holding repaid.
    yeh didnt quite make sense to me either macduffy.
    they could buy them on market for less, and yet they chose to pay par.
    For clarity, nothing I say is advice....

  4. #24
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    So do you guys have any insight as to their intention regarding RCSHA perpetual pref. callable 2019. Current interest 8.3425%. Rate resets 5yr swap plus margin 3.75%, last reset 2014.

  5. #25
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    So the RBOH capital securities were duly repaid on 10 October. Now IFT advise that their IFT170 bonds will be repaid as scheduled on 15 November and there won't be any reinvestment offer. Don't need the money, apparently. That 8% coupon will be missed! - and more funds to redeploy!

  6. #26
    Guru Xerof's Avatar
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    I think you'll find the early redemption had nothing to do with interest rates, and everything to do with the bonds no longer being able to be categorised as 'Tier 1 equity' on the Balance Sheet.

    Like chewing gum on the bedpost, over time they both lose flavour

  7. #27
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    Quote Originally Posted by kiwitrev View Post
    So do you guys have any insight as to their intention regarding RCSHA perpetual pref. callable 2019. Current interest 8.3425%. Rate resets 5yr swap plus margin 3.75%, last reset 2014.
    Chris Lee says they will be repaid June 2019.
    So buying now at $107 will cause a capital loss of 7% in 20 months time, offsetting about half the 8.34%pa interest.

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