Interest Rate Securities

[D.T.]

Hi gang,

By interest rate securities, I'm referring to things like Corporate Bonds, Convertible Notes etc that are traded on the ASX.

2 questions:
1) Who has invested/traded in these before and what have been your experiences?
2) How is the income from these treated/viewed by banks & lenders in terms of servicability for buying IP's?

 

[Aaron_C]

I can answer 2). Treated like shares - need to show 2 years returns.

 

[D.T.]

Speedy response Aaron.

So after 2 years, remind me what proportion of the dividend income most lenders would use in their servicability calcs? Do any lenders take into account the franking benefits?

More or less just researching additional ways to proactively improve my serviceability

 

[Aaron_C]

Speedy response Aaron.

So after 2 years, remind me what proportion of the dividend income most lenders would use in their servicability calcs? Do any lenders take into account the franking benefits?

More or less just researching additional ways to proactively improve my serviceability

They use all the dividend income assuming you still hold them, at the current dividend rate.