Ideas please.

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Comments

  • Warning though roger - not all Prefs were created equal. Some issuers have already thought about redeeeming at PAR, so much research is definitely warranted.

    Some (not all) issuers have said that they will not redeem at PAR.

    But, as shaunm, has said, if you are looking for income forever and never want to think about selling then there are some good issuers paying, what I think, are good interest rates.

    All bets off though should inflation rear its ugly head.


  • dandigirl - having alerted you to this (42TF) I've been worrying about your non-appearance of income. Has it finally arrived?
  • Hello Laughton: Thank you for enquiring but no, the payment has not arrived as of today. We chased A J Bell before Christmas. Sloppy response unfortunately received late Christmas Eve. They replied in respect of a 11% holding with payment due and received on the same date. I have chased again but as yet no response. I am reassured that you have received yours which suggests that it is more to do with A J Bell admin than the Coop. Feel that A J Bell back-office let's them down from time to time. Thanks again for asking. Happy New Year.
  • Hello Laughton: Funds arrived today. Again, HNY!
  • hallelujah

    it's not the aj bell back-office letting them down, it's the culture at ajb needing to change for better customer outcomes
  • With all the chaos going on in the equity market some of you may not have noticed that quite a few of our "favourites" have dropped a little recently. I picked up a few more ELLA this morning at under 147p for what I make a yield of 5.87% which I'm quite happy with.

    Others showing lower than recently include LLPC and AV.A (but I like ELLA best).

    Please spread the word if you come across something interesting.

  • Thank you, Laughton. Appreciated.
  • Laughton,
    A you say a few of our favourites have dropped in value, that's partly because a few of us have been disposing of such securities, on the basis that the majority of "Asset Classes" would fall during a Pandemic.
    Sold
    AV.A Concerned re Life Assurance claims
    ELLA No specifics, but if other Prefs reduce, these will as well!
    RSAB Potential insurance claims
    LLPC Potential large banking losses (Don't trust the Govt to pick up the bill!)
    NWBD As above
    SAN

    I have retained shorter dated securities, Infrastructure funds, plus PIBS (under review)

    It was a very difficult decision, as you say these were my "favorites"

    However I will keep monitoring them for possible "re-purchase", however I suspect this may a few months (perhaps 2 years) away, until the UK has the virus & the Economy under control.


  • Very quiet on here recently (everyone keeping their heads down).

    Anyway, more to keep the dialogue going than anything and certainly not a recommendation but just picked up a few more AV.A @ 145.50p for, what I make, a yield of a shade over 6%.

    Yes, I do remember their attempt to take us out at PAR but, as I see it, that's fairly old news and I live in hope that the new broom might be more sensible about an offer price should they decide they would quite like to retire these prefs.

    Just waiting on outcome of covid insurance claim court case before deciding on whether to add to ELLA.
  • Laughton
    As indicated in March, I have exited most of my Fixed Income securities due the Covid-19 situation. I think the pricing on many securities are going to have a "severe hammering", once the central banks stopped printing money.
    All my PIBS holdings have been sold in August, their reserves are not able to withstand a major recession (most mortgage providers have been working on ultra low margins for the past few years, no fat being added to the business)
    Inflation could eventually start to rear it's ugly head.
    Therefore battening down the hatches, in preparation for a major storm.
  • My first post so hello to you all.

    It feels to me like the calm before the storm. Everything apperas calm on the surface but behind the scenes corporates are battenning down the hatches, cutting costs, cutting investment and wherever they can raising prices.

    It is hard to see how unemployment is not going to lead to significant issues for some mortgage holders. Perhaps that is manageable in terms of profits as after all the bank has the property as security and most loans have been at 90% or lower for some time but nevertheless their risk weighted assets are going to explode placing pressure on bank/building society T1/T2 capital.

    More concerning are those banks/building societies which lent against commercial property as the ability of the asset to generate revenue flows is under severe pressure and the security will in a number of cases be now worth less than the loan.

    Not easy times as a fixed income investor. I'm 70% in cash and focussed on not getting tied up in too many positions now as I perceive there will be better opportunities next year.

  • Jammy Dodger,
    Welcome to Fixed Income, perhaps not very good timing to take an interest in these type of securities.
    However between the years 2012 to 2019. some good safe returns were achieved.
    Lack of new issues has not helped this sector in the past 2 years.

    "Calm before the storm", yes I would 100% agree.

    With the lack of manufacturing in the UK, unemployment could reach 20% (1 in 5)
    The travel & entertainment industries are going to be decimated
    Even when the "Covid-19" situation improves, most people won't be able to afford to take luxury foreign holidays
    Taxation rates are likely to rise to pay for the current government costs

    Not looking good
    Only companies worth investing are likely to be gold miners & diagnostics (PCR testers etc), most others companies are likely to see their underlying assets reduced.
  • Thank you. I've been invested in fixed interest (mostly bonds) for a number of years and I seem to be more cautious than the average investor on here. None of the Wasps type bonds and even Burford is too scary for me (I can't help but feel their accounts are too opaque and there might be something there which might come back to bite me)

    It sounds like you are even more pessimistic than me, although even gold seems like a bubble to me. Just somewhere to park money for safety apparently. I'm not sure how something that rises 25% in a short period of time is safe as it can fall 25% just as easily but these are strange times.
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