Halifax 9.375% 2021 GRY

Can someone knowledgeable explain why the GRY of this bond (981V; ISIN XS0066120915) (1.485%) is so much lower than bonds of only 6months shorter maturity, eg Paragon 6% 2020 (4.159%). Of course the Halifax is seen as a better credit risk and has a higher running yield, but is there something else not so obvious? I have had modest holdings of both for some years and, as a "hold to maturity" investor, find the Halifax holding difficult to justify at its current price. I look forward to insight from an expert, please. Thanks in advance


  • I believe it is simply the credit risk. If you look at the bond prices and yields on this website (GB Bonds Corporate) you can see there are a number of financial bonds with even lower yields for similar maturity and the equivalent gilt yields 0.34% (8% 2021)
  • Thanks Frugal. I am amazed that it is really that simple.
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