Bonds without maturity, usually look out for any early redemption clauses and whether the level of coupons will be reset.
|Securities / Coupon / Maturity|
|LENOVO 5 3/8 PERP||USD|
|Yangtze River Infrastructure Ranch|
|CKINF 4.85 PERP||USD|
Perpetual bonds have additional risks and complex characteristics including (but not limited to) the following:
- Perpetual bonds (Perp): Bonds have no maturity date, and generally watch out for any early redemption clauses.
- Floating rate coupon can be reset (change): coupon can be reset on reset date, based on benchmark (such as LIBOR or Treasury rate) + fixed credit spread.
- Coupons can be deferred (accumulative or non-cumulative): is a common feature in perpetual bonds, while the bank's Contingent Convertible Bonds (CoCo) coupons must be deferrable and non-cumulative.