KinAlberta Posted June 2, 2015 Share Posted June 2, 2015 Any thoughts on how these can turn out for issuers and investors? Some trivia: Canada once issued perps. in the 1930s. I 'inherited' one 1937 3.75% perpetual in the early 1980s. It was in a small trust fund that my grandfather had set up for each of the grandkids. The trust was managed by a trust company! Did I mention that it was a small trust fund I received. July 23, 1993 Business Digest Coca-Cola Follows Disney In Selling 100-Year Bonds ... Companies have been extending the maturities of their debt, locking up today's low interest rates for uncommonly long periods. But Disney and Coke are borrowing for twice the length of time as any of the others has." http://community.seattletimes.nwsource.com/archive/?data-ipsquote-timestamp=19930723&slug=1712406 Bankers Pitch 100-Year Bonds By KATY BURNE Updated Aug. 23, 2010 http://www.wsj.com/articles/SB10001424052748704488404575442021845873594 Should You Consider Buying 40, 50 Or Even 100 Year Bonds? When the Treasury issues debt it could be for a maturity date anywhere from a few days from now to 30 years out. In the mortgage market, most people are familiar with the traditional 30 year mortgage. So people may assume that 30 years is the longest maturity there is. In reality, some companies issue 40 year, 50 year or even 100 year bonds. Some governments issue bonds that mature in, well, never! 40 year bond issues seems to be getting more popular as companies like Microsoft and AIG have talked about issuing their own (or have already done it). Coca Cola and Disney famously launched 100 year bond issues in the past. Coca Cola’s 100 year bond actually has a solid coupon of 7.375% but before you yield chasers go clamoring to buy some remember that the bond trades at about a 55% premium to par meaning its actual yield to maturity is about 4.75%. Still not a bad yield especially considering today’s rock bottom yields. But should you consider buying these? ..." http://getsmartgetwealthy.com/2015/05/should-you-consider-buying-40-50-or-even-100-year-bonds/ Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now