Perpetual bonds

Perpetual bonds have become a popular investment among private investors. In this yield-hungry environment, investors have been enticed by the headline coupons offered by perpetual bonds. Private investors have bought a big chunk of some perpetual bonds - as much as 76 per cent of the recent perpetual issue by Cheung Kong (Holdings) went to private banks.

But many of the recent issues have immediately traded below par. Perpetual bonds issued in January by Agile Property, Cheung Kong and Reliance Industries have each lost 5 per cent to 10 per cent of their value.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1156330/perpetual-bonds