KFW 10% Initial Coupon
KFW is a German bank that is expilictly guaranteed by the German Government. These notes pay 10% for the first six months. After that, the interest rate is calculated quarterly, and is the difference between the 30 year Constant Maturity Swap (CMS) rate and the 2 year CMS rate, multiplied by 10. Since 1990, this spread has averaged 1.58%*, which would result in a 15.8%* coupon. Currently this spread is approximately 155* basis points, which would give you a 15.5%* coupon payment.
Please contact us at 800 454-1628 or at orders@jwkorth.com for more information.
KFW
U.S.$ 10,000,000 Fixed Rate to
Floating Rate Callable Notes due July 14, 2023
Issuer |
KFW (guaranteed by German government) |
Ratings |
AAA/AAA |
Maturity |
15 years, 7/14/23 |
Price |
100% ($1000) |
Coupon |
10% FIXED for 6 months; then 10 x (30y cms - 2y cms); NO CAP |
Frequency |
Quarterly, first payment 10/14/2008 |
Redemption |
Callable quarterly at 100%, beginning 1/14/2009 |
Minimum Purchase |
$10,000 |
* Past performance does not indicate future profitability.
What is a Constant Maturity Swap Rate?
Click here to learn more about CMS rates.
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