Hi Danube and ITB,A number of ways of looking at this.If sevpc...

Hi Danube and ITB,
A number of ways of looking at this.
If sevpc is redeemed then instant capital gain.
If stepped up then very generous margin.
Unless overall spreads deteriorate, this margin would be above the rate that SEV would expect to pay for money from the banks?
If not redeemed, then only reason I can think they would have, would be a large aquisition.
If that were the case, then would stepup imply a greater risk of insolvency?
How investors answer these questions will determine the price.
My feeling is that stepup would lower price.
Time will tell, but an example to look at is the Santos securities, they went up when redemption was confirmed.
Either way, I think they are good value, just a question of how good.
As far as AAZPB's concerned, think the return reasonably aligned with risk, especially as holders could suddenly get a surprise redemption any time.

cheers
cheers