NZP010 - remarketing

[kiwitrev]

Hi Liz
I don't hold but my buddy has a sizable parcel and is looking for advice. Trying to read between the lines of your post does your easier decision mean you will not roll the bond over?? Cheers

[Lizard]

Hi Liz
I don't hold but my buddy has a sizable parcel and is looking for advice. Trying to read between the lines of your post does your easier decision mean you will not roll the bond over?? Cheers

Personally, I won't be, but that's just my risk tolerance when it comes to bonds - I preserve all my gambling instincts for shares.

[Onion]

I preserve all my gambling instincts for shares.

Lizard,

Is the gamble you refer to the chance that the remarketing will be successful or not? And thus the interest rate is unpredictable?

For new investors there is less of a gamble -- if the remarketing is not successful then notes will not be sold to new investors. If successful the rate will be...

the higher of (i) the Minimum Interest Rate (which has been set at 6.35% p.a.) and (ii) the five year swap rate on 17 November 2014, plus the Margin which has been set at 2.00% p.a.