Sharechat Logo

New Bond Issue Market Looking Very Upbeat

Friday 25th September 2020

Text too small?

Dear Sharechat readers

It would appear the new bond issues market is again well underway, with a number of bond issues hitting the market in August and September. We at Equity Investment Advisers Limited are anticipating  more of these new issues over the next few months. Unfortunately the coupon rates will likely be trending downward especially, after the election when we expect general interest rates to continue to trend downward. 

It is interesting that the recent Wellington Airport bonds (WIA070) rated BB that were issued at a coupon rate of 2.5% traded today at 1.98% and some supply is on offer at 1.98%  and 1.95% on the exchange today.

The recent Summerset bonds (SUM020 unrated) issued last week at a coupon rate of 2.30%  have traded as low 2.10% and is today on offer at 2.12% and 1.90%.

The new Auckland Council Bonds (AKC130  AA rated) issued at a coupon rate 2.95% will likely trend down sharply down upon listing and could be as low as 2% or less over the next 6 to 9 months. 

So  we anticipate more corporates coming to the market with bonds to capitalise on the sliding interest rates. 

Should you be looking to buy bonds from new bond issues over the next few months, please contact Tony or Jason at Equity Investment Advisers Limited and we are likely to be able to assist you secure supply. 

If you wish to discuss listed bonds, please call Tony on 09 304 0229 or email tony@equity.co.nz or jason@equity.co.nz




  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AFT Pharmaceuticals Limited (NZX: AFT) Maxigesic IV licensed in Eight New European Markets
My Food Bag Group Limited (NZX: MFB) Lists on NZX & ASX
Fonterra Shareholders Fund (NZX: FSF) Fonterra Lifts 2020/21 Forecast Farmgate Milk Price Range
Evolve Education Group Limited (NZX: EVO) Announces Acquisitions and Intention to Resume Dividend
My Food Bag Group Limited (NZX: MFB) L&Q Notice My Food Bag Group Limited
General Capital Limited (NZX: GEN) Equifax Affirms General Finance BB- Rating
Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) Appoints New General Manager Investment
Synlait Milk Limited (NZX: SML) FY21 Guidance Update
Z Energy Limited (NZX: ZEL) Announces Changes to Executive Team
Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) FY21 Third Quarter Dividends

IRG See IRG research reports