facebookWould you consider Astrea VI bond at 3% pa? - Seedly

Anonymous

10 Mar 2021

βˆ™

Stocks

Would you consider Astrea VI bond at 3% pa?

Hi, would you consider Astrea VI bond? 3% pa πŸ˜…?

Discussion (1)

What are your thoughts?

Learn how to style your text

Bullythebear

10 Mar 2021

Tutor at Self employed

I'm 70% sure I'm not going to apply, and I listed the reasons here.

There are two previous and listed Astrea bonds with their respectively yield to maturity (ytm):

Astrea IV

Current yield: 4.1% pa

ytm inclusive of 0.5% bonus upon redemption at scheduled call date: 1.76% pa

Astrea V

Current yield: 3.7% pa

ytm inclusive 0.5% bonus: 2.44% pa

I think, first of all, I expect it to do well and be oversubscribed, like the previous two issues. So if you want to stag the IPO (subscribe and sell on first day), chances are that it's going to be good. Compared to the previous two issues, it's better to buy the new one at it has a higher yield of 3%.

Whether you think it's worth it to risk your capital for 3% is for you to decide :)

Write your thoughts