Hmm, not strictly true. The ABS in Zipmoney Trust are priced at...

Hmm, not strictly true. The ABS in Zipmoney Trust are priced at BBSW1M plus a margin, depending on their seniority. The forward curve isn't priced into the coupons, so these are very much floating rate securities.

Anyway, the secured investors in the trusts are not the creditors to worry about. The bigger worry is refinancing the SGX listed convertible. Note holders will have the right to put the note back to ZIP for a total of $436m in April 2025. Zip doesn't have that to spare yet, so will need to start generating some sizable operational cashflow between now and then so it can refinance on favourable terms. Present earnings forecasts have negative ebitda for 22, 23 and 24, so that will need to be reversed.