{"id":27979,"date":"2015-02-26T19:57:45","date_gmt":"2015-02-27T00:57:45","guid":{"rendered":"http:\/\/prefblog.com\/?p=27979"},"modified":"2015-02-26T19:57:45","modified_gmt":"2015-02-27T00:57:45","slug":"burrito-bonds-may-cause-indigestion","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=27979","title":{"rendered":"\u201cBurrito bonds\u201d may cause indigestion"},"content":{"rendered":"<p>Andrew Allentuck was kind enough to quote me in his November, 2014, piece <a href=\"http:\/\/www.investmentexecutive.com\/-\/-burrito-bonds-may-cause-indigestion\">\u201cBurrito bonds\u201d may cause indigestion<\/a>:<\/p>\n<blockquote><p>The 8% cash interest payment is \u00a380 a year on the \u00a31,000 note, or \u00a3320 over four years. The weekly free burrito boosts the return. During the four-year term, a bondholder would get 208 free burritos. Each burrito costs \u00a36; that&#8217;s \u00a31,248 worth of burritos. Add the \u00a3320 cash interest and the total return on the investment would be \u00a31,568 &#8211; or 157% of an interest-equivalent return.<\/p>\n<p>In contrast, the Bank of England currently offers 1.5% on its five-year gilts. On a \u00a31,000 note, that would buy you two and half burritos a year. Not surprising, the burrito bond issue was heavily oversubscribed, given the current climate of low interest rates that provide insufficient income.<\/p>\n<p>Even without the nosh, the Chilango bond would find takers, says James Hymas, president of Hymas Investment Management Inc. in Toronto, &#8220;especially when you offer 8% on a bond.&#8221;<\/p><\/blockquote>\n<p>Chilango has very fancy website and <a href=\"http:\/\/chilango.co.uk\/about\/burrito-bond\/\">trumpet the success of the bond issue<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Andrew Allentuck was kind enough to quote me in his November, 2014, piece \u201cBurrito bonds\u201d may cause indigestion: The 8% cash interest payment is \u00a380 a year on the \u00a31,000 note, or \u00a3320 over four &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-27979","post","type-post","status-publish","format-standard","hentry","category-press-clippings"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27979"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27979\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}