Slowly, slowly catchee monkee.
The perpetual nature of this security means its unlikely to ever achieve face value. On the other hand, the 180-bank swap rate + 4.75% The BBSW 180 is currently at around 1.9%, so a coupon of 6.55% on a face value of $100 is pretty good. Buying that security for $80 delivers an effective coupon of 8.19%. Not to bad at all.
The added bonus is that SVW can buy it back at any time at full face value (its the "at any time", along with the inherent risk in SVW, that gives this security the risk and hence its discount to face value). What some see as risk, others see as a (currently) 25% opportunity.
svwpa, page-231
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Last
$36.00 |
Change
0.280(0.78%) |
Mkt cap ! $14.65B | |||
| Open | High | Low | Value | Volume |
| $36.06 | $36.11 | $35.66 | $16.72M | 465.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4878 | $36.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $36.04 | 1690 | 1 |
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| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| SVW (ASX) Chart |