UOC010 - University of Canterbury

[sharer]

There doesn't seem to be a thread for this issue.
Probably even a thoroughly vibrated university is still a fairly safe investment.
Any views on this fixed interest option: 7.25% maturing 15 Dec 2014 ? (current mkt 7.6%)

[BIRMANBOY]

I cannot see this on DB..where did you find it?

There doesn't seem to be a thread for this issue.
Probably even a thoroughly vibrated university is still a fairly safe investment.
Any views on this fixed interest option: 7.25% maturing 15 Dec 2014 ? (current mkt 7.6%)

[sharer]

It is on DB.
last 3 chars are zero-one-zero

[BIRMANBOY]

Thanks ..found it .. I was looking on NZ fixed interest link. So the reset rate is 1.75% over 5 year swap in dec 14 (5 year swap at moment is 4.17) which would make it 5.92% after dec 14 . Safety wise you would think a university would be ok... question is what does future hold for swap rate? Its not a big margin over the swap rate however so even if swap rate goes up how will that compare to other perpetuals. I would be more interested at over 8%..At the moment buying at 7.6% returns 7.16% after fees etc. Didnt look for the prospectus/offer however. Eg can they recall and under what circumstances and what happens after the next reset, and what period till next etc.

It is on DB.
last 3 chars are zero-one-zero

[sharer]

Thanks for comment BirmanBoy.
Another factor there for some investors (UoC hopes) might be the potentially philanthropic impulse to gift the UoC at term rather than taking the capital back.
As most of my Estate is already committed to philanthropic charities i'm not doing that, and decided instead to quit while i'm ahead and reinvest in other long term securities. Options seem to be increasing with the predicted OCR rises now in place (& likely to continue for maybe 18 mths or more).

[BIRMANBOY]

Commendable ...since your estate is orientated to charities, might I suggest several other options if the available funds are looking for deserving homes. I am available for adoption and if that seems like greed is promoting my interest, let me assure I would dedicate considerable time and effort in ensuring the funds are distributed equally (and rapidly) to Logan Browns, Webbs, Dunbar Sloanes, Prestige Cars and other worthy recipients. Failing that, the soon to be registered charity, "Home for unwed Birman mother cats" is definitely deserving. Yes, it looks like interest rates could be raising for a year or so. I have sold all my bonds ,debt securities that are bringing less than 8% and putting the funds in high div producers. I can see interest rates going up a ways but I don't think they will get into double digits in my lifetime. I do remember my father crowing about getting a term deposit for 2 years at 22%....many years ago of course. My estate is probably destined for SPCA if my partner doesn't spend it all

Thanks for comment BirmanBoy.
Another factor there for some investors (UoC hopes) might be the potentially philanthropic impulse to gift the UoC at term rather than taking the capital back.
As most of my Estate is already committed to philanthropic charities i'm not doing that, and decided instead to quit while i'm ahead and reinvest in other long term securities. Options seem to be increasing with the predicted OCR rises now in place (& likely to continue for maybe 18 mths or more).

[sharer]

Wonderful proposal BB, best offer i've had all week. Not sure about the secondary beneficiaries, but we could have lots of fun & good kai doing the rounds of the Wellington restaurants. My fave is still Ortega Fish Shack when my family take me out. Years ago a friend took me to Logan Brown's for a superb dinner, though i recall worrying i might be picking up the wrong silverware implements, and embarrassed my host by asking what some of them were for. I'd be more comfortable at their recent Cuba street downmarket bistro. My thoughts about bonds are along similar lines, though i so far lack your efficiency. I do recall once owning some bonds paying a regular 14% for years, before they went bust.

[Toulouse - Luzern]

Enjoyed the humour in your posts and Sharers reply.

[QUOTE=BIRMANBOY;486123]Commendable ...since your estate is orientated to charities, might I suggest several other options if the available funds are looking for deserving homes. I am available for adoption:

I have looked at UoC010 a couple of times and as recently as this morning.

I have decided to wait ...

I also enjoyed your post about TD in time gone by ...

"I do remember my father crowing about getting a term deposit for 2 years at 22%....many years ago of course."

This rang a bell and made me smile, too as I was too busy paying off the mortgage and into shares a bit ... whereas Mrs TL invested her money iin term deposits at up to 28% as I recall ....

Those were the days, and I can also remember back in the day when burgers were $2.00 just like the guy in BK ad...