chim chimney chim chimney....., page-63

otakou, you are not reading the BBN010 bond prices correctly. Look on www.nzx.com, under the NZDX tab, but I will also help you out now.

The SPARCS bonds, BBN010, last traded at around 35 cents, which shows up as a 220% Yield To Maturity (YTM) because at this stage the maturity in Nov 2009 and if you got your $1 back then, plus interest, well in theory you make a 220% gain (not that this is going to happen). There are current bidders at 22.4 cents and no sellers.

The BBI Networks bonds, BBN020, last traded at a yield of 38% YTM, which was a price of 49.4 cents. There was a flurry of activity around these levels this week as the sweep buyback process seems to have been completed on Thursday and Friday. They will I assume announce further Friday purchases on Monday morning.

It will be interesting to see if there was a sweep in March and whether further buybacks continue in April, otherwise we will have to wait for the April sweep and see what happens in May.