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Places for People - New Issue
New Retail Bond Launch: Places for People Finance plc 4.25% 2023
I won't be applying.
I won't be applying.
Comments
On the plus side, a good credit and equates to equivalent UK Gilt +325bps.
On the minus side, they aren't secured on property which I would expect for such a measly yield.
So same name as before but different risk?
The financial statements supplied to Companies House for Places for People Ventures Operations Limited, for the year ending 31st March 2016 was signed off by KPMG LLP (Independent Auditor, Andrew Sayers) on 15 September 2015
Clearly 2015 should read 2016, but if the auditors can't put the right date in, was else could be incorrect?
See https://beta.companieshouse.gov.uk/
My main concern is how good the "security" is behind the 4 companies, perhaps Oliver can enlighten us with a write-up. Plan to invest, but not sure at what level.
Not so long ago anything under 6% was pooh-pooed - now look where we are !!!
Looking at the yields of existing bonds out there, the coupon doesn't look too bad if you're looking to diversify.
4.25% unsecured is perhaps not generous but at gilts +325 this compares to gilts +135 for the secured institutional bonds. On that basis there seems little wrong with including them, at par, to a diversified income producing portfolio and holding to maturity?
Its a housing association essentially, they are not going to trash their reputation with a small issue which is backed by commercial arm.
Bonds might go down as rates rise, who knows, but relative to others out there, eg A2D, yields 3 (22maturity) and 3.4 (26), this is cheap.
Also a small issue to replace maturing current retail bond and keep diversification of funding, so priced to sell imo.
Nor can one place a verbal order!
I'm not too pleased!
Placed my usual order for a new retail orb bond.
Helps with the portfolio diversification
Like Gliderpilot, I have been reducing my exposure to some of the previous issues which have "lowering yields to maturity"
Uncertainty with Euro Government gilts may persuade foreign investors to look at the London ORB bond market.
Interesting times ahead.
I don't have a problem with a 7 years bond
With the record number of EU nationals coming to the UK, I cannot see "wage inflation" taking off,
Re BRexit, the Conservatives will be committing suicide if they continue their "Exit" policy, the £ I think is gaining ground on the basis that a u turn is required (Houses of Parliament should have the final say, they are better informed than us (general public) as to what is best for England, Wales, Scotland, Northern Ireland), without forgetting our neighbours (Eire, France & Germany etc).
PLACES FOR PEOPLE FINANCE PLC STG 4.25% GTD BDS 15/12/23 (WI)
Current price = 100.50 (Mid)