My preferred entry of $70 is within reach.. I will prob sell down my holding of brookfield bonds to finance more of MXUPA
This is what FIIG says (my fav broker for these type of securities - very switched on team)...
From a valuation perspective the securities are offering a stepped-up running yield of approximately 11% after the price fell back to around $75 after the announcement apparently some investors were still expecting redemption. This is an adequate return in itself but will likely rise as interest rates and thus BBSW increase.
Again however, the real upside is in a potential redemption of the securities. The Chief Executive of Brookfield Multiplex, Brian Kingston, reiterated that at some point in the future, whether it is six months, a year or even a few years, the company will look to redeem the MXUPA as credit spreads normalise. This will crystallise a 33% capital gain from current prices and the securities remain a BUY.
MXG Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
