Hi Guys,
Well I'm VERY new to the whole stockmarket scene as I have mentioned in other recent posts. I was looking at the government bond and I am now looking at Hybrid securities...
A friend of mine mentioned they are fairly secure and not a bad idea for someone who wants a low risk, but better than 'sitting it in the bank' return.
Anyway, I have been looking at this page... and I'm pretty confused.
http://www.macquarie.com.au/macsecmc/codi/CodiServlet?nav=start&documenttosend=income_security_doc
Lets say I'm looking at CBA Perls IV. I really don't understand most of the fields, and was hoping someone would be lind enough to explain in N00b terms.
Issuer/ Paper Credit Rating
-------------------------
AA/A+ - I believe this is a good rating.
Interest Margin
--------------
1.05% - Is this the interest rate P.A they pay?
Current Coupon
---------------
4.112% - I'm not sure how this differs from the Yield.
Last Rate/Set Date
------------------
02-Feb-09 - Is this the last date I could buy the bonds at the above coupon rate?
Next Coupon Date
-----------------
30-Apr-09 - When the next Coupon is issued? - Does this mean they give me 4.112%( Current Coupon) of what I've bought? Sounds like too much
Next Coupon
------------
$1.9601 - ok so the current coupon is listed as a % but the Next coupon is a $$ value. ??
Early Rdm Date / Final Rdm Date*
-------------------------------
31-Oct-12* - Is this the Maturity date?
Last Price
----------
$178.00 - ok so this is the price I can buy at.
Trade Margin (Grossed FF)
-------------------------
4.20% - No idea?!?
Nominal Yield
------------
6.83% - There is an explanation but I don't understand it.
Gross Yield
-----------
8.32% - what I'd get if I kept them to maturity??
Running Yield
-------------
4.63% - what i'd get if I sold now???
So as you can see... I don't understand a lot of the terminology.
I've read thebull.com.au's article on Hybrids shares which made sense,but this terminology is throwing me off.
Plus when I look at buying shares through commsec, it doesn't have ANY of the yield information, including the maturity dates. Should it?
Many Many thanks in advance.
Bobg
Well I'm VERY new to the whole stockmarket scene as I have mentioned in other recent posts. I was looking at the government bond and I am now looking at Hybrid securities...
A friend of mine mentioned they are fairly secure and not a bad idea for someone who wants a low risk, but better than 'sitting it in the bank' return.
Anyway, I have been looking at this page... and I'm pretty confused.
http://www.macquarie.com.au/macsecmc/codi/CodiServlet?nav=start&documenttosend=income_security_doc
Lets say I'm looking at CBA Perls IV. I really don't understand most of the fields, and was hoping someone would be lind enough to explain in N00b terms.
Issuer/ Paper Credit Rating
-------------------------
AA/A+ - I believe this is a good rating.
Interest Margin
--------------
1.05% - Is this the interest rate P.A they pay?
Current Coupon
---------------
4.112% - I'm not sure how this differs from the Yield.
Last Rate/Set Date
------------------
02-Feb-09 - Is this the last date I could buy the bonds at the above coupon rate?
Next Coupon Date
-----------------
30-Apr-09 - When the next Coupon is issued? - Does this mean they give me 4.112%( Current Coupon) of what I've bought? Sounds like too much
Next Coupon
------------
$1.9601 - ok so the current coupon is listed as a % but the Next coupon is a $$ value. ??
Early Rdm Date / Final Rdm Date*
-------------------------------
31-Oct-12* - Is this the Maturity date?
Last Price
----------
$178.00 - ok so this is the price I can buy at.
Trade Margin (Grossed FF)
-------------------------
4.20% - No idea?!?
Nominal Yield
------------
6.83% - There is an explanation but I don't understand it.
Gross Yield
-----------
8.32% - what I'd get if I kept them to maturity??
Running Yield
-------------
4.63% - what i'd get if I sold now???
So as you can see... I don't understand a lot of the terminology.
I've read thebull.com.au's article on Hybrids shares which made sense,but this terminology is throwing me off.
Plus when I look at buying shares through commsec, it doesn't have ANY of the yield information, including the maturity dates. Should it?
Many Many thanks in advance.
Bobg