Not many thoughts on this little interest bearing security?
By my calculations, I'm getting around 17.5% per annum... assuming conversion at $100 on step-up date (or, market value of $100).
Failing that, a 3.8%+BBSW interest rate, when I bought it for $85.52, would also be quite nifty. Not quite as good, but, certainly not a bad outcome. Assume BBSW = 5%... $8.8 a year, when I paid $85.52 will do quite alright :).
I was a touch too impatient, tbh. If I had waited till I had sold MQG (next few days) I could have got a few more FXJPB, but I have to wait for trades to clear into my bank account. Hmm, at least I feel like I got a good price. Sellers were at $87 for most of the day; started at 87.2, drifted to 87, held, went to 86, and then finally i sold for 85.52. Turns out I could have probably got 85.50, but, $0.02 doesn't make a difference on 29 notes:P. It's not worth another $30 to pick up $500 more (or, hm, perhaps $1,000 more)... when instead, I can just put that towards my next purchase (more GNSPA? MXUPA? WOW?)...
FXJPB is one of the more favourable interest bearing securities, according to my risk profile and investment horizon, IMHO. 1.55% isn't a high rate of interests... but, when you compare it to, say, BENPB, IMHO, FXJPB seems a better opportunity.... more than 4 yeas earlier conversion/stepup, trading at pretty much the same price, giving pretty much the same interest rate... with FXJPB giving a better step-up rate. Obviously this is to compensate for how the market is pricing the FXJ risk, compared to BEN... but, I'm comfortable with FXJPB :)
Any thoughts?
FXJ Price at posting:
$1.58 Sentiment: Buy Disclosure: Held
