OVERVIEW
• NZUs remain well bid
• History rhymes
COMMENTARY
Spot NZUs closed up 10 cent at $24.85.
Some may find the current market rally surprising given we are 15 cents below the cap and it’s still eight months until surrender for this emission year. The May 2020 forward is pricing $25.40 so what gives here?
History doesn’t repeat – it rhymes. We saw a very similar rally this time last year from June to December 2018; the spot price rallied from $20.50 to $25.85. There were a few reasons why. (1) There was a view that the $25…
