ASX Interest Rate Securities

[JIT]

Hi there,

Does anyone here have any experience in investing in ASX interest rate securities, eg. corporate bonds, convertible notes etc. (and ?redeemable preference shares)?

Are these a valid alternative to other cash/fixed-interest investments such as high interest online savings accounts, term deposits etc.?

http://www.asx.com.au/products/irs_product_description.htm

Thanks.

 

[Aaron_C]

Not in Australia due to the lack of liquidity and high spreads, high taxing of interest income and high brokerage etc.

 

[shiftyphil]

I've got a small investment in hybrid securities that I'm collecting interest on.

10% yields with controlled risks. Using borrowed money (currently paying 3.9%).
Capital gain if/when they are redeemed.

Price had moved a bit since I bought in, now back to where they were.

Currently holding MXUPA (Brookfield) , SVWPA (Seven Group) and AAZPB (Australand).

So far no problems.

 

[JIT]

I've got a small investment in hybrid securities that I'm collecting interest on.

10% yields with controlled risks. Using borrowed money (currently paying 3.9%).
Capital gain if/when they are redeemed.

Price had moved a bit since I bought in, now back to where they were.

Currently holding MXUPA (Brookfield) , SVWPA (Seven Group) and AAZPB (Australand).

So far no problems.

Thanks shiftyphil, just curious how/where you are getting 3.9% interest using borrowed money, or have I mis-read?