I disagree with your above thoughts early in this thread.
Since then, FXJPB has gone from 85.5 to 88...
Conversion time has gotten shorter, more important for SEVPC with a shorter date.
SEVPC has gone from 95.75 to 93.15...
Those extra $5 may change the circumstances though... and, I now can't quite make up my mind.....
Hmm, having said that, there are $3.56 less dividends than you calculated for SEVPC........
At any rate, I'd rather, personally, the longer time-frame that FXJPB gives. I mean, if I could get around 19% p.a for the next 2 years on all my equities, I'll be happy...
Out of interest, I calculate $9.56 of interest payments for FXJPB....
Hmm, now, if only I could be bothered pulling out my graphics calculator and working out the YTM.
According to ComSec (which uses current BBSW, not expected future)... 21.97% for SEVPC and 18.58% for FXJPB. I guess that is around 19.2% YTM for FXJPB; call it 19%.
Approx 3% less unfranked YTM for FXJPB... However, that just leaves the question of will these stepup or be redeemed?
Hmm, probably fairly equal chance. SEVPC with more money, but, closer to the GFC. 3.8% for FXJPB isn't toooo high, but, in 18 months it will be high.
Hmm, the fact that I know more about FXJPB and FXJ and that FXJPB has a longer date (I can continue to get expected returns above my target rate for a longer period of time)...*and* the brokerage cost of changing...
Hmmm. Having said all that... margin loan of around 8.3%.... expected return of circa 22%.
Do the maths.
Hmm. Tempting.
FXJ Price at posting:
$1.63 Sentiment: Buy Disclosure: Held
