• Why the NZU REPO is best to do right now?
A REPO is a financial trade where you sell (or buy) spot and simultaneously buy (or sell) a forward. This type of trade suits an emitter who wants to keep their NZUs for next year but wants cash to pay the $25 Fixed Price Option (FPO).
Right now in our view, this is the best time to do this trade. Spot NZU prices have fallen $3 from their highs and now represent very good value from three perspectives.
1) You could sell spot at present levels and…