Interest Rate Hike - Price Of This Bond Went Up
On 29 November 2016, I mentioned in my blog that one of the bond to buy in an interest rate rising environment is HSBC coco 5.625% Perpetual:
myasiaprivatebank.blogspot.sg/2016/11/hsbc-coco-perpetual-bond.html?m=1
At that time the bond was trading at 96.50. Today the same bond is trading above 98.00. Chart of the bond is shown below.
With the anticipation of aggressive interest rate hike in 2017, most bonds are beaten down. This includes bonds that have coupon reset feature and also bonds that does not have coupon reset feature.
Smart investors have been buying HSBC 5.625% Perpetual after seeing the bond trading at deep discount to par. This has resulted in the bond price moving up.
myasiaprivatebank.blogspot.sg/2016/11/hsbc-coco-perpetual-bond.html?m=1
At that time the bond was trading at 96.50. Today the same bond is trading above 98.00. Chart of the bond is shown below.
With the anticipation of aggressive interest rate hike in 2017, most bonds are beaten down. This includes bonds that have coupon reset feature and also bonds that does not have coupon reset feature.
Smart investors have been buying HSBC 5.625% Perpetual after seeing the bond trading at deep discount to par. This has resulted in the bond price moving up.
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