‘Perpetuals’ are Interest Rate Securities without a maturity date. Investors get their money back when they sell the securities in the secondary market. Therefore, in assessing whether to buy perpetuals, investors should take into account the potential liquidity risk. That is ‘what will be the likely ability to sell these securities in the secondary market in the future’.
Typically perpetuals pay a floating rate of interest and often have a call provision.
There are also perpetual placements, which are debt placements constantly going on in money markets, meaning short term.
Avoid the broker speech and things get much clearer. Some brokers use the "EverGreen" in the meaning of a constant debt placement and sale, so an undisrupted arbitrage flip, just beware when good things come to an end....
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Current Topic - EverGreen Buy Sell With The Program Owner
