JENNY RUTH: What messages are corporate bonds sending?

Tue, 28 Apr 2020

Trading in corporate bonds listed on the NZX provides some interesting inferences as to what investors are thinking at a time when rational thought may be hard to come by. Take New Zealand Post – yes, it's facing severe structural challenges with dwindling mail volumes, but it does have a thriving parcels business and it is 100 percent-owned by the government. It has $200 million of bonds maturing in November 2039 that have a coupon of 4.23 percent and are listed on the NZX. That means if you bought them directly from NZ Post and held,...

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