Sqwark, yes, CWNHB are virtually perpetuals like AYUPA,...

Sqwark, yes, CWNHB are virtually perpetuals like AYUPA, but:

1.AYUPA pays 7.14% if you are an Australian taxpayer.

2.AYUPA are fixed.CWNHB are floating, so if Cash Rates go to 3%, then CWNHB goes to 7%.

3.Cash Rates will rise over the next two years for the first time since 2010, making fixed rate bonds less attractive.

But AYUPA look very cheap as you say, and I will buy more, but I already have a lot.It is a low risk preference share and Cash Rates won’t rise that much.

And like you say, AYU and MCI are not really understood by the market.

I believe there is (or was) a $4m overhang, as someone took too many in the $103 placement last year.Unless an insto steps up and clears this line, inventory will continue to dribble out.Once cleared, I expect the price to get back to $103 and above, subject to the bond market not selling off too much more.