Relative to other investments on the ASX I think GINHAs are not very risky. They are rated A by the ratings agencies for payment of capital at maturity (they were AAA when launched in 2005). Their capital buffer has only dropped from 10% to 7% over a five year period (which included GFC Mark 1) and only 17 months remain until maturity. Their published watchlist is now quite small and there have been no credit events for the last six months. However there's not enough return to tempt me to buy at over $70. Though a potential 42% capital gain if they make it to maturity is a nice earn if not a stellar one.
But don't take my word for it, DYOR!!
GIN
generator income trust.
