Hints and tips:
...The banks completed a $1.96bn bond sale for the deal, selling the debt with a coupon of 9.29 per cent....
...Most platforms don’t offer access to UK Treasury bills, which are issued at a discount to face-value with a maturity of one year or less....
...(That wave of supply growth was driven largely by bills, which pay yield not through coupons but by selling at a discount and redemption at par.)...
...(Bills, in contrast, are sold at a discount and redeemed at par, with no need for coupons.)...
...The bank issued a mainstream bond with a seven-year maturity and a coupon of 4 per cent in early January....
...lending: The discount window could serve as an effective vehicle for providing such funding directly to these institutions....
...It still has a relatively high coupon compared with official debt. The overall cut to cash flows in the bondholder deal, which still needs approval later this year, has not been disclosed by Zambia....
...The calculated NPV reduction is around 40 per cent (using a 5 per cent discount rate). This isn’t a “push amortizations out by a couple of years and keep a LIBOR + 300 bp rate” kind of restructuring....
...Of two dollar bonds issued in November, Israel is paying coupons of 6.25 per cent and 6.5 per cent on bonds maturing in four and eight years’ time....
...This means discounts on short-dated bonds with a low coupon value currently offer the most striking tax advantages....
...While bondholders could have charged about 2 per cent for US bonds in 2015, they instead collected an annual coupon of 8.97 per cent for Zambia....
...Last week, it cancelled a $300mn share placement offered at a discount of 17.7 per cent at the last minute, according to a document produced by sole bookrunner JPMorgan....
...Rental prices for short-stay rooms were offered at a discount....
...Concerns over Country Garden’s finances grew this month when it missed coupon payments on international bonds....
...Winter added that individuals would receive a greater net return by investing in short-dated gilts with a low coupon and a large discount to maturity price, as capital gains tax is not levied on any uplift...
...Over the past year, rising interest rates have resulted in these trading at a significant discount to their face value. Buying heavily discounted bonds can offer tax advantages....
...If that creates a Swiss discount for regulatory capital issued by its banks, too bad. The Lex team is interested in hearing more from readers....
...On BofA’s balance sheet, its portfolio of low coupon debt securities, recorded at a cost of $801bn, now has a fair value of $698bn. That lower net present value reflects a higher discount rate....
...Treasury can, in principle, delay coupon or principal payment dates....
...But given the limited supply of discount bonds and limited markets for premium bonds, zero-coupon bonds, and perpetuals, there won’t be sufficient liquidity for this to be a long-term solution....
...His Spaldy fund has committed to spend £102mn on new shares priced at 30p, a 33 per cent discount to Friday’s close....
...Outside China, both eBay and US discount chain Five Below said last year they hadn’t seen any impact on their business from Temu. Amazon didn’t mention it when reporting results last month....
...When inflation is irrelevant, changes in companies’ cash flows fuel returns: rising cash flow yields boost stocks and make bond coupons look worse by comparison....
...The shares were set to be issued at a 17.7 per cent discount, and the proceeds would have been used to “repay indebtedness”, the company said....
...But might a discount be coming? Other large, mature retailers are in similar situations....
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