In the short span of 2012, we have seen a large rise in companies issuing perpetual bonds. And it is no surprise that some REITs are starting to take notice of this and look to take advantage of issuing perpetual bonds

What are perpetual bonds

Perpetual bonds are debts that pays a fixed coupon throughout its duration but where it differs from normal bonds is that it does not have a maturity date where the issuer will return you your principle sum.

Because there is no maturity dates, the interest required to compensate the bond holder will typically be higher.

Most of these bonds are callable which means that the issuer can choose to redeem the bonds, pay you back your capital.

Because they do not mature, they can be treated as equity as well.

Recent issues

The following table shows a comparison of 2 recently issued perpetual bonds and ...