The Lemon Fool

New Retail Bond Launch: Places for People Finance plc 4.25% 2023

4.25% ?
Unless one is really scratching around for diversity, surely not worth getting out of bed for.

V8

Agreed that it appears to be a paltry rate, however the gross redemption yields on many of the safer usual retail corporate bonds are under this.

A year ago, it may have been interesting, but with RPI inflation now at 2% I wouldn't want to tie myself in for 7 years. Even Ratesetter is giving average 5.5%.

Steve

stevensfo wrote:A year ago, it may have been interesting, but with RPI inflation now at 2% I wouldn't want to tie myself in for 7 years. Even Ratesetter is giving average 5.5%.

Steve

You would not be tying yourself in. You can sell within seconds of buying once secondary market trading starts.

I have not looked into this properly and will not be subscribing, but similar new issues have subsequently traded at a premium. I would not be surprised to see that happen with this.

You can sell within seconds of buying once secondary market trading starts.

Yes, you're absolutely right, but I'm more a LTBH person and anyway, to deal in bonds, I'd have to do it by phone which isn't always easy at work. I've never understood why brokers won't allow bonds to be bought and sold online.


Steve

Steve - some brokers do allow some bonds to be traded online - although it's been my experience that a telephone deal and a bit of running round by the broker can lead to a better price being achieved.