As some of you will probably already know myself and Matt have started to dabble in equities and bonds in order to grow a portfolio for eventual! retirement (along with pension etc.) After researching GB corporate bonds we are now looking at Gilts/UK govt. securities. Before trying to study concepts such as "yield curves", we thought it would be an idea just to look at a very small selection of those available, for educational purposes.
So looking on the HL and the fixedincomeinvestor sites, we found these 3 which all mature in 2022:
Treasury 4% 2022 (TR22)
http://www.hl.co.uk/shares/shares-searc ... 70322-gilt
https://www.fixedincomeinvestor.co.uk/x ... &groupid=3
Treasury 0.5% GILT 22/07/22 GBP1 (TY22)
http://www.hl.co.uk/shares/shares-searc ... 20722-gbp1
https://www.fixedincomeinvestor.co.uk/x ... &groupid=3
Treasury 1.75% 2022 (TG22)
http://www.hl.co.uk/shares/shares-searc ... -1.75-2022
https://www.fixedincomeinvestor.co.uk/x ... &groupid=3
Firstly the terminology: Are they all known as "Gilts", and what (if any) is the significance of the second letter (the R, Y, G etc) in their short description?
Secondly the figures: Whilst the listing "redemption yields" (I'm guessing this is effectively the same as YTM) from the HL site, are very close to one another (when I looked the variance was 0.96%-1.06%), the coupon values varied a lot. Since I couldn't find information on their issue dates, would I be right to guess, that those with higher coupon rates are the long-dated bonds, i.e. in terms of time since issue TR22 > TG22 > TY22 ?
thanks Mel
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