Comments

  • Yet another issue right at then end of the ISA year when Mrs Woz and I have used up all of our allowance !!!
  • Thank you, Laughton. Good to see Mark Glowrey involved. MG is a Fixed Interest specialist of long standing.
  • They don't like you wozzit, too bad : )
  • Be good if they don't have the optional maturity date, and that is around 6 years or 7 years maximum. Be very interested if this was the case. With the dual maturity, it is difficult to sell say in the 12 months before maturity when the yield begins to get lower as they are deemed to be safer.
  • Laughton thanks for the heads up. Wozzitworthit-surely with the road/ beauty show just being announced which could take 2-3 weeks taking us to say 10th March ( budget is 11th March ) then surely will take another 2-3 weeks to get bond proposal out and allow for further 10 days for decision making/apps your timing should be ok for 20/21 ISA ? If not and things move along more quickly you still have stocks and shares gains allowance up to 2K and then transfer in to ISA later ( maybe filled already though ? ).
  • Not wishing to prejudge this issue but had a look at some of the other retailcharitybonds that are trading. The yields on offer at issue don't seem that generous (3.9% to 4.4%) yet they are all trading today at even lower yields.

    There is a market for those that I checked and yesterday someone was happy to accept a running yield below 4% and a YTM a smidgen over 4% on one with 6 - 8 years to maturity.

    I know we live in a world of super low interest rates but inflation picked up a little this week so does the panel think that a sub 4.5% yield is attractive (assuming that's the level they settle on)?
  • edited February 22
    isn't the cap gains at 12k rather than 2k
    https://www.gov.uk/capital-gains-tax/allowances

    The bonds are def overpriced, but so are stocks, and so is gold, bitcoin and tesla, this is what happens when there is plentiful of money in the world and little in terms of growth, the prices go up and expected future returns go down, that's why they keep putting more and more money in gold, bitcoin and tesla, that's the only place where the price can still go up 50%, bonds and stocks are going to struggle matching that kind of returns

    i just came up with an even better one, haha

    They don't like you wozzit, not worth it, haha
  • The Financial Markets, It's like a balloon ready to go bang, just needs a very tiny thing (virus) to make it go pop!
    All the markets are clearly over-priced, the recent money injection by the Chinese authorities is just making the balloon bigger, for a louder bang.

    Waiting for the large pop!
  • Wozz further to the above from me ( Feb 21st ), I should have said you have a 'divi allowance' of £2k p.a. on top of ISA allowance but you probably know that anyway.
  • The Fallen today, no haha for many equity investors today!
    TOP 10 FALLERS
    TIDM Name Price +/- %+/-
    EZJ EASYJET 1,327.50 -181.00Down-12.00 Chart News
    RWI RENEWI PLC 39.25 -4.05Down -9.35 Chart News
    KIE KIER GROUP 129.50 -12.70Down -8.93 Chart News
    WIZZ WIZZ AIR 4,016.00 -391.00Down -8.87 Chart News
    ENQ ENQUEST 23.40 -2.04Down -8.02 Chart News
    FXPO FERREXPO 143.80 -12.50Down -8.00 Chart News
    KAZ KAZ MINERALS 454.90 -38.50Down -7.80 Chart News
    PDL PETRA DIAMONDS 5.70 -0.48Down -7.77 Chart News
    TUI TUI AG 786.00 -65.00Down -7.64 Chart News
    IAG INTL CONSOL AIR 576.00 -47.00Down -7.54
  • shaunn - when you say "Chart News" is that charts triggering on Friday's closing price or on today's opening price? I suspect that majority of FTSE350 will be triggering SELL if on today's prices. Not really much of surprise with many of those on your list - outlook for airlines and holiday companies can't be that great at the moment.
  • I can make a similar list with Top gainers for last year, or last 5 years or last 10 years or last 20 years, plenty of haha for those who understand the adaptive performance of humanity, for eg -

    Great horse manure crisis of 1894 -
    https://nymag.com/news/features/establishments/68513
    https://www.businessinsider.com/david-tepper-speech-horse-sh8t-2010-9
    https://en.wikipedia.org/wiki/Great_horse_manure_crisis_of_1894

    You really can't look at the market outcome for a day, nobody has the crystal ball for a bloodbath on 24 Feb 2020
  • Thanks for your comments

    It was rather tongue in cheek that I made my comment ref the ISA year.

    Usually by about Christmas , Mrs W and I have used up all of our ISA allowances and the normal annual tax allowances, including those for savings and dividends

    We did think though, as Laughton has also pointed out, that the chances are this issue is highly likely to be below 4.5% - however, we thought that we could prune some of our over indulgences in other investments in the interest of diversification

    Since then, partly egged on by the reaction to the Coronavirus outbreak, we have offloaded all of our Enquest Bonds and now have sufficient funds in one of our ISAs to purchase any pre April 5th issues

    We may well buy back into Enquest at a later date if price and condiitons look favourable


    Woz

  • Wozzitworthit-I did wonder if you were a little tongue in cheek but anyway nothing ever lost by chatting/talking in this media as it doesn't take too much time and you never know a throwaway comment on the surface could be very interesting to another.
    On that subject should we be worried about Burford retail bonds !!!? ( ords down the tubes again this a.m. ).
  • Wozzitworthit, you have done well to sell any oil bonds due to the current Covid-19 issue.
    We be interested to know what other fixed interest securities you plan to off-load.
    I have already reduced holding in AV.A (life Assurance concerns)
  • Currently, don't plan selling any more fixed interest securities - in fact may well be on the look out to buy more with ENQ1 proceeds and new ISA allowance - we will see , obviously a lot depends on how the effects of the Coronavirus saga plays out.

    Don't think we are alone in having a shed load of Balfour Beattie Prefs coming to an end in July releasing even more cash to find a home.

    The pathetic returns on bank deposits (the best is currently 2% for a 5 year deposit) would tempt us to put more money than we normally would into retail charity bonds as and when they come up (depending on terms and how they are rated etc etc)

    We sold most of our perpetual preference shares following the Aviva nonsense, and are left with a few NWBD and NTEA. We do have though the BBYBs referred to above and a pile of RAVC - both of which have a pre determined life

    Most of our PIBs went a while ago - but still have a handful of BOI, SBSA and NOTP - however, we have a lot of 1SBA and 1SBB which will almost certainly be called in prior to or just after the end of 2025 - even if they aren't , we are fairly comfortable with them at present. We also have some CEBB, another floating rate type investment

    Woz




  • I have started a new discussion for this bond so it's more easily found and searchable in the future
  • Woz, what makes you think the 1sba, and 1sbb will be called around 2025
  • Colin,

    It is probably a good job you asked me that ......

    Many months ago there was a lot of discussion on one of the fixed interest related boards about Basel III requirements and what would be counted as qualifying Tier 1 capital in the future.

    There would be a transitional phase before this came into full effect

    It appeared that PIBs and Permanent Subordinated Bonds (PSB) would fall into that category

    December 2025 was a date I recall reading somewhere at that time, as being the cut off date for tthose PIBs and PSBs

    However, I can't find any of these dicussions - no doubt as they were almost certainly on The Motley Fool forum or on Mark Taber's website forum - both of which are now defunct

    What I have now found is this

    https://www.bis.org/bcbs/basel3/b3_trans_arr_1727.pdf

    This appears to show the transitional arrangements for capital instruments that no longer qualify as non-core Tier 1or Tier 2 capital as expiring the end of 2021

    I have also found the following comment in a document from Principality Building Society

    Quote -

    As a result of the more stringent rules on loss absorbency the Group’s Permanent Interest Bearing Shares (PIBS) no longer qualify as Tier 1 capital. The rules allow for instruments that are no longer eligible forinclusion in Tier 1 to be grandfathered (phased) out of eligibility over the 8 years between 1 January 2014 and 1 January 2022. The Group can recognise a maximum of 80% of the carrying value of the PIBS during 2014 and this percentage will continue to reduce by 10% per year.

    - Unquote

    So - IF (a very big "if" as I have merely picked out stuff from a Google search of hundreds of pages of documents) that is correct, then -depending on whether the issuers want to keep their PIBs/PSBs for other purposes, they may look for ways of pulling these.

    Those issued by OneSavings Bank have call dates as you know, so it would be relatively easy for them to do that.

    It now appears that if they decide to do so, then this might well be before January 2022 and not by 31st December 2025 as I had previously thought

    Thanks for asking .......

    Woz

  • edited March 6
    .. and thank you Woz. Interesting. One to watch, I think.
  • Yes , thanks for that wiz, I 've got a few of these plus the principality pin.
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