Mkt liking ARV result...
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Mkt liking ARV result...
People do ... otherwise there would not be any bonds for sale :) :
Apart from that ... bonds do have a different risk profile than shares (i.e. they help with risk mitigation in a balanced portfolio) and, if you buy them in high interest times, they are likely to add to the interests a capital gain (if and when interest rates go down).
Not commenting on this particular case, but there clearly are situations where it makes sense to buy bonds over stocks ... and people do.
Discl: Holding currently as well some bonds (though no OCA bonds).
Sobering updated house price prediction from ANZ.
https://www.stuff.co.nz/business/mon...rom-their-peak
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Economists....i call them visionary...talk sheet no actions. Just like politicians and my boss...talk..talk..talk...no actions,,,expect others to do the mahi.
The economist predicted the housing price would fall when the covid hit. Instead,, the house price is doubling since 2020!!!
Infratil not selling Retire Australia
Probably didn't want to sell at 30%/40% discount to NTA - wait another year or two until sector seem more favourably
Those interested (assuming there was interest) might make a move on Oceania .... shareholders probably happy to accept a buck a share even though our Liz would say it's an opportunistic offer and doesn't refect the true value of the company
That
We have had our inlaws living with us since April having sold their property early this year. They have made offers on numerous properties pitching their price reflecting the medias spin on prices coming down. Their summation is while there is some evidence of prices coming down, it is no where near what is being represented by the media. Lot of click bait going on. Prices pretty much still up there unless you have a desperate vendor.
Lets see:
If you buy OCA010 at current prices, they get you something like 6.5% ... and I'd say the risk of default is negligible. If interest rates drop, you will get on top of that a capital appreciation. Your risk: If interest rates further rise, your capital will drop.
And you are right ... if you buy the share at 82 cents you get a dividend yield of 6.1% (i.e. nearly the same as the bond) ... and the chance (and amount) of a capital appreciation appears to be much higher - but hey, it is still a share, i.e. the overall risk (and certainly the volatility) is higher.
Anyway - I hear what you say, but still could see why conservative investors want some of the bonds in their portfolio as well.