View Full Version : Sbs bond
NZSilver
15-02-2024, 11:03 AM
Has anyone applied, yield will be 7.6-7.8%
mshierlaw
15-02-2024, 05:33 PM
Has anyone applied, yield will be 7.6-7.8%
i'm not a fan of 5 years fixed then 5 years floating, you have no idea what your return is going to be in the second half of the term.
Quite a few offers being packaged like this now, perhaps good for the issuer, :confused:
Grimy
15-02-2024, 08:21 PM
7.62% and brokerage paid by SBS.
I'm tempted, but plenty of other opportunities about at present.
GTM 3442
16-02-2024, 08:00 AM
With a credit rating of BBB it's one notch below what I regard as acceptable.
I see the conversion to a monthly rate reset after five years as the equivalent of a bank savings account which you can only get out of via the secondary market - and I'd pick that such a sale would be at less than face value.
I like the initial rate, but I see the second half as being a bit on the risky side for my taste.
Grimy
16-02-2024, 08:40 AM
They may pay out after the initial 5.5 years.
GTM 3442
16-02-2024, 09:30 AM
They may pay out after the initial 5.5 years.
Then again, why would they in a falling or static interest rate environment? Somewhat similar to Infratil buying back IFTHAs from time to time. Capital and debt management
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