Workspace 6% 9/10/2019 Early redemption

Comments

  • If I've read the prospectus correctly the reference bond is TR19 with ytm of .682% so this should redeem at a tad over 106, I'm quite happy with that - I get the interest 6 months/ a year early and can reinvest elsewhere now.
  • Seems that these companies are no longer willing to invest their surplus cash in office properties for the foreseeable future. Prices too high? Top of the investment cycle? Brexit? or all three?
  • Early Redemption payment received today (YouInvest), plus interest payment (full 6 months) Redemption price = 105.09 (very good price, yield 1.23%)
  • The question now is what to do with the proceeds. I'm very tempted to have another nibble at BBYB which offers a nice juicy yield for a sub two year hold until redemption.
  • Selftrade paid the principle amount yesterday and I got the interest payment of 2.52% today, which is about what I would expect for the 5 months from 9/4/18.

    I have quite alot of BBYB, but would be tempted by a few more. However the best price that I can get is 111.6p which only gives a YTM of 5.1% according to my XIRR function.
  • Well, yes, we all seem to be suffering from the same problem. What to do with the proceeds? I'm still worried that interest rates will go up over the next couple of years. OK, maybe by not all that much but enough to concern me about committing to anything for more than 2 or 3 years.

    I too already hold BBYB and comments above and with less than 2 years to go made me look at possibly adding some more but I must be calculating badly. I only make the YTM a shade under 4% at a purchase price of 111.6p. My calculator makes the IRR come in at exactly 4.80% based on buying 5,000 and taking into account stamp duty and commission.

    So, where am I going wrong?

    Did take opportunity to buy a few more 42TF (Co-Op Instalment Notes with just over 7 years to go and an IRR, by my reckoning, of 6.21%). The 6.21% compensates for the extra time, for me anyway.
  • Laughton, I too calculate 4.8% using Excel's XIRR function. It would be 5.1% if you ignore stamp duty I think. Either way I'm happy with that for the next 20 months or so.
  • Including Stamp Duy, Dealing charges and 2 day settlement I was geting 4.8% yesterday using Open Office XIRR function

    Yes, I agree it's still a good deal - trouble is, as I think I said before I already own half of the company !!

    Woz (alias Mr Balfour)
  • Thanks everyone, I had the wrong dates in my spreadsheet, so now get YTM of 4.8%.

    I am overweight in Co-op debt debt as well as BBYB. I have mainly gone for 42TE as buying any sizeable amounts 42TF is a real hassle with Selftrade. Another problem of adding to BBYB is the fact that almost 20% of my bond portfolio expires in 2020 already !
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