any suggestions for shorter bonds
Where would people suggest putting excess cash, which I don't want to allocate to equities.
I was looking at TSC5 5%, matures 21/11 which depending on price you pay (100.9) seems to equate to 3.25%. It is Tesco Finance credit.
or
PAG1 6% which you can get for just below par, matures 5/12/20. Clearly much higher risk with Paragon but a fair chunk of equity to go through first.
Or, if anyone has suggestions for prefs which are reasonably liquid. I have never touched these before,
AV.A was mentioned on a similar forum which is about 6.4% cumulative, apparently irredeemable at least until 2026 but with all those associated risks.
Any suggestions appreciated!
I was looking at TSC5 5%, matures 21/11 which depending on price you pay (100.9) seems to equate to 3.25%. It is Tesco Finance credit.
or
PAG1 6% which you can get for just below par, matures 5/12/20. Clearly much higher risk with Paragon but a fair chunk of equity to go through first.
Or, if anyone has suggestions for prefs which are reasonably liquid. I have never touched these before,
AV.A was mentioned on a similar forum which is about 6.4% cumulative, apparently irredeemable at least until 2026 but with all those associated risks.
Any suggestions appreciated!
Comments
As Euro17 mentioned, there is liquidity risk as well, so if you have enough spare cash, you can try to dime the bids for all the names on your shortlist and see which one you get execution first and cancel the remaining ones.
Looking at the charts of all the above names, they all look pretty correlated, so Euro17 might be right on the execution quality driving the actual returns. If you dime the bids and get an execution, you could try to capture that extra liquidity alpha.
Guilt, Anger, Shame, Disappointment
Frustration, Anxiety, Sadness, Embarassment
There is no shortage of emotional weapons we are constantly deploying all day long and of course decreasing performance all around : )
What's the story with Aviva/general pref share situation
Arjungaur, can I ask how you access the order book, do you have direct market access and can leave limits? I use HL which basically give you a bid and offer, normally within the LSE published spread and you have 15 seconds to accept or not. I have never even tried to leave a limit order with them as I think the price would probably move against you and I am not even sure how HL handle them, for example which market makers they are shown to if any.
Sussexmade, as mentioned I have never touched prefs, I have vaguely followed the situation from a distance, might I ask which ones you would suggest looking at?
Still holding a few others - shorter maturities one are
A2D1
PFP2
Other possibilities are more Equity eg infrastructure & Renewable funds
Recently added as few gold equities - CMCL, PAF & HGM , as gold mining companies tend to do well in major recessions / depression. Unemployment rate is a disaster in the USA
Re Prefs, sold mine due to likely claims (life assurance deaths / business interruption) in the insurance industry (AV1, RSAB), and banking (bad debts on loans) due to Covid-19, (SAN1, LLPC, NWBD, BOI)
Not the best environment for investors, holding cash may be best, and pick some good investments when the markets turns negative again
https://on.ft.com/2A2Jj2E
FT Subscribers https://on.ft.com/2X9k0nt
You are right, leaving limit orders means you are likely to get filled against a trending market, so limit the limit orders in the direction of the trend, of course trends reverse all the time and so keep an active eye on the price action
There is an order handling policy, maybe there are some details there https://www.hl.co.uk/terms-and-conditions
The more your order is visible to other people, the better chance of someone filling it, order visibility is only problem for larger orders which scare away the other side : )
https://en.wikipedia.org/wiki/Preferred_stock
arjungaur also faces the same big barriers like the rest everyone - ego barrier and blindspot barrier : )
https://www.investorschronicle.co.uk/comment/2020/04/07/preferential-treatment-income-alternatives/
https://in.reuters.com/article/brief-lawmaker-seeks-fca-update-on-aviva/brief-lawmaker-seeks-fca-update-on-aviva-preference-shares-redemption-idINFWN2D212K
https://www.telegraph.co.uk/business/2020/05/21/mps-demand-answers-city-watchdog-aviva-probe
This is a great environment for investors as global businesses are on sale due to a very temporary 'recession by proclamation'. Now obviously the discount has narrowed in last couple of months, but with the reduction in frictional costs, there are more opportunities accessible than ever - https://www.trading212.com/en/isa
There are no guarantees markets are going to turn negative again, Holding cash in excess of next couple years of budgeted use is probably going to be a drag on your overall long term portfolio returns, Cash is Trash -
https://markets.businessinsider.com/news/stocks/i-still-think-cash-trash-ray-dalio-dismissed-dollars-reddit-2020-4-1029079224
BTW shaunm are you fruit picking this year ( not low hanging fruit in the stock market ! ) and giving your kayak a run out on the Medway ? Weather would have been ideal the last few weeks though pubs will be open for sure within 6 weeks making it even more interesting maybe.
Given that overseas workers end up paying not much tax and that almost all of their earnings are taken out of the country the obvious solution is to make earnings to UK people who sign up this year tax and national insurance free.
Maybe that will get them enough workers to do the job?
They have been steadily raising the tax-free Personal Allowance over the years, though more can be done.
You can also claim for NI in CJRS - https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme#work-out-how-much-you-can-claim-for-employer-national-insurance-contributions-nics
Even if you do use financial pressure to get enough workers, you are ultimately decreasing their adaptive performance as well as leading to lower productivity of the overall economy, which makes debt levels less sustainable -
However over the past few weeks invested time on researching some of the high risk equity players relating to Covid-19, eg NCYT, YGEN, AVCT (now sold at profit, too high a risk), EKF, TSTL, BYOT and BVC. Not for the faint hearted!
Regarding Fixed Income securities, I am increasing using Fill / Kill orders at a specific price with YouInvest, just in case the price is silly. YouInvest, if the order is not accepted, they often call me back indicating an indicative price the market makers would accept, thus I have an option to re-consider the proposal.
All these high risk equity players can serve well for those with large enough well-diversified portfolios
Next time you can make proposal to YouInvest that they let u access the order book directly, so you and I can transact with other at the mid-price : )
Your share researching sounds interesting re Covid but all too speccie for me at my tender age. Maybe we should all follow the governments proposed sovereign wealth fund and invest where they do-what could go wrong ?!
https://www.thisismoney.co.uk/money/news/article-8351337/Britains-plan-25bn-sovereign-wealth-fund.html
The Conservatives, part-nationalizing British Industry, what a big surprise! (but under a different name)
Sovereign Wealth funds are usually set up by Nations with "Abundant Resources"
I can see this "back-firing" in a spectacular way in 3 or 4 years time when the nation's coffers have run dry, perhaps to be known as "Abundant Drainage of UK public resources"
Re Mr Cummins - Instead of 50,000 Excise-men on our border posts, we could have an extra 50,000 to support the NHS!
Governments of today don't seem to be taking in the best skilled people available?
BR final exit seems to be a disaster waiting to happen.
Ps Payroll, my last employment, this was outsourced to a small organisation, for £66 per month (25 staff), it wasn't worth doing it "in-house", also I had limited skills!
ENQUEST PLC 5.5% SNR EMTN 15/02/22 GBP
PARAGON GRP OF COS 6% EMTN 05/12/2020 GBP100'1
PRINCIPALITY BS 7% PIBS PERP GBP1000 (scratch that, will be called this yr, I see in other thread)
SEVERN TRENT 1.3% IDX LKD 11/7/22 GBP100
TESCO PERSONAL FIN 5% MTN 21/11/2020 GBP100
CO-OPERATIVE GROUP 11% SUB NTS 18/12/2025 GBP
Burford Capital 2022 6.5%
You could have open borders like Europe or close borders like North Korea, it's a mistake to have excise men on borders
Govt has lot of inertia/bureaucracy, so they should delegate more to private hands with better skills and more flexibility
5% target income is not conservative in zero rates world, any higher and it'll be competing with Junk Bonds
'shorter' examples he listed were TSC5 5% 21/11 and PAG1 6% 5/12/20