@Mosb, I understand what you are saying about the hedging price being for 62% and not 58% which is what most of AGOs product is but if you have time can you explain a little more about the basis risk.
My understanding was that they discounted around 20% from the 62% price for the last quarter as that was the going rate but since then the % discount between 62% and 58% has decreased. With the swaps price being over the current IO price this would therefore be a good move now wouldnt it?
Excuse my lack of knowledge on this subject and i will look into the differences between swaps and hedges but if u could give a brief description would be much appreciated.
Regards Pidg
AGO Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held