ASBPA, ASBPB and ASB030

[blackcap]

Cheers for the reply McDongle, really interesting reading that. My theory was that they may be issuing this new debt to redeem the ASBPA's and B's as per your scenario above. Although $400m is not enough to take out the $550m at face and the timing is slightly off.
Then there is the question.. why are the PA's and PB's currently trading at such a discount to face? I have been trying to get my head around that one without much luck!

[macduffy]

Cheers for the reply McDongle, really interesting reading that. My theory was that they may be issuing this new debt to redeem the ASBPA's and B's as per your scenario above. Although $400m is not enough to take out the $550m at face and the timing is slightly off.
Then there is the question.. why are the PA's and PB's currently trading at such a discount to face? I have been trying to get my head around that one without much luck!

Probably because they are seen by the market at large almost exlusively as an income stock with little weight given to the possibility of redemption/capital gain. I hold a few B's.

[GTM 3442]

Cheers for the reply McDongle, really interesting reading that. My theory was that they may be issuing this new debt to redeem the ASBPA's and B's as per your scenario above. Although $400m is not enough to take out the $550m at face and the timing is slightly off.
Then there is the question.. why are the PA's and PB's currently trading at such a discount to face? I have been trying to get my head around that one without much luck!

After a couple more cuts to the OCR rate, and an interest rate reset, there are no doubt those who think the arse is going to fall out of the price, down to a possible 60c.