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  1. #21
    Member Penfold's Avatar
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    Look's like some institutions are coming in and buying them... big orders going in.

    Still don't quite follow the desire to own RBOHA.

    I have been wondering given the uncertainty around the place of tier 2 capital on bank balance sheets, will this perpetuals get called at the first opportunity?

  2. #22
    Guru Xerof's Avatar
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    That seems to be the driver Penfold. Yielding ~11% assuming called at par in 2017 at current coupon.

    Risk is they don't call......but good odds IMO

  3. #23
    Share Collector
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    Quote Originally Posted by Lizard 22-3-12 View Post
    Re-sets been moving up strongly since this thread was started, so I guess I can now conclude the correct answer was "yes".

    ...Or at least the correct short term answer.

    ASBPB up from 59cps to 70cps... RBOHA from 75cps to 82cps... IFTHA the laggard, from about 53cps to 56cps.
    After an initial surge back in March 2012, the re-sets have bounced around a bit but now once again on the rise. ASBPB now 83cps, RBOHA 90cps, IFTHA 69cps and WKSHA finally back to face value at $1. Re-set interest rates are now on the rise, and, as I see it, the window to buy re-sets at "safe" rates may be starting to close. Right now, relative to market price, the re-sets appear to be yielding similarly to fixed term bonds of a similar risk. Should interest rates rise, the re-sets should be in a position to hold their market value while fixed term bonds can be expected to fall.

    I have been adding to my holdings in recent months to obtain higher, more liquid term returns than term deposits, while hoping that they will hold value better than equities should the market fall.

  4. #24
    Share Collector
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    The rush for re-sets seems to have continued, with nothing on offer for ASBPB or WKSHA. There is currently a 5cps spread on ASBPA bid/offer and nearly 4cps spread on the IFTHA, with 3cps on the OCFHA....

  5. #25
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    Quote Originally Posted by Lizard View Post
    The rush for re-sets seems to have continued, with nothing on offer for ASBPB or WKSHA. There is currently a 5cps spread on ASBPA bid/offer and nearly 4cps spread on the IFTHA, with 3cps on the OCFHA....
    Over the last few years they have had a dismal return compared with shares...but you are right they have been increasing, & when the sharemarket falls ..they are reasonably safe with a reasonable return

  6. #26
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    Further to my last post ..as far as I can calculate the capital gain on ASBPA pref shares over the last year has been 31percent......on WKSHA pref shares has been 22 percent. On top of this there has been a dividend. So at last these pref shares are getting back to true value.

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