BigTim wrote:....where do I think there are comparable returns? Nowhere without a greater degree of risk I'd have thought.
This is the question.
The price is fair, if one wanted to get out, but NWBD is undated and pretty much secure from being 'retired'.
When I sold most of my FI last year, I kept this and AV.A/B, ELLA, NATW - OK, NATW is not a Pref - so if I cash in, what to buy.
Mentioning NATW, this also is tendered, at 185 / 6.2% which is a good price, better than a five-year high.
We're not allowed to buy any more as NW won't produce a KID. Again, it's undated, well actually it's callable in 2052 so it's undated as far as I'm concerned. Originally it was a larger issue than NWBD - £200mio against £140mio, but here aren't so as many of these extant now, and I would guess that this is the one NW really want to retire.
Again though, how to replace the income?
Unless I'm just going to shuffle off to ITs, some of which offer a pretty secure divi, but not bombproof as these two NW issues have been.
All that said, in terms of getting out this level of tender seems unlikely to be repeated any time soon... when inflation gets going the prices will start to drift down.
And in tax terms, I have some losses I could offset.
Otoh, NATW is only held in my ISA
One way and another, urrgh.
V8