Wasps WAS1

I noticed the Wasps bond has dropped over 10% in the last few days. Can anyone throw any light on this matter. Thanks in advance.

Comments

  • Possible reaction to ERO1? Wasps is the riskiest of all the retail bonds imho because Covid has damaged their revenues.

    Some selling on other riskier retail bonds too, so possibly someone just taking some money off the table or forced closure due to losses on ERO1

    WAS1 seems very illiquid so maybe just someone selling faster than the market can absorb?
  • Thanks for that. I would have sold to but when ii took over EQI this was my last corporate bond from a holding of over twenty. Thought I would hold it to maturity to get the last two coupons and the final upswing to par. Also with ii they want £49 to sell the bond on Crest as opposed to £10 on Eqi. Glad I got out the corporate bond scene as they are not as simple investment instruments as is portrayed. I am personally doing far better in investment trusts that contain bonds but I leave the picking to someone else. Thanks.

  • gtonsaffron12.... See the entries for online trading re interactive investor
  • I see both Bruntwood and IPF2 have dropped in the past few days. Any views as to why?
  • This is not the riskiest of bonds. Most bonds are unsecured obligations. This bond is secured by a first charge over the company’s assets. The principal asset was recently valued independently at nearly 50% more than the nominal value of the bonds.
  • gtonsaffron12:: your post above re bond ITs caught my eye and interest. Your thoughts as to the ones you invest in would be appreciated. Thanks.
  • dandigirl - excuse me for butting in and you seem the sort that probably reads all the threads on here anyway but have you seen:

    https://www.fixedincomeinvestor.co.uk/x/forum.html#/discussion/603/axiom-european-financial-debt-fund-ticker-axi

    scroll down to the last post and there are several alternatives to think about.

    I hold SMIF but I wouldn't set much store by that. Reading JammyDodger's summary I did think about AXI but the price has since gone up, hardly any trades daily and the spread is much wider so a part of me worries about where that would leave me if I suddenly wanted to sell out. I quite like getting dividends every month too as with SMIF. As with all of them, need to keep track and think about purchasing when the price is suffering.

    An interesting listen for anyone interested in where the markets are now and where they might be going:-

    https://moneyweek.com/investments/investment-strategy/603678/jeremy-grantham-podcast

  • Hello Laughton: Thank you. We have been away in the West with the rest of England, it seems. Have dipped in here only occasionally. Will take a look at that link.

    We did buy a few AXI before the uplift so we have covered the spread plus a bit already. Did only a cursory due diligence on the basis that if it was okay for JD it would be for us. Not many though, will take a closer look in due course.

    Thanks to you and to JD.
  • Accounts for the 20/21 year have just been published (much earlier than the 19/20 year ones).
    The Director's Report entry concerning the Bond maturity is "Future developments -
    For the financial year to 30 June 2022, the Board is concentrating on responding to the challenges imposed by COVID-19 and the refinancing of the Wasps Finance Bond. As at October 2021, the Board had begun discussions regarding the refinancing of the bond on or before the scheduled maturity date in May 2022."
    So, nothing new but at least they realise that something needs to be done!
  • They may do like IPF and Eros and extend the duration with a sweetener to present holders !!
  • Don't think WAS1 is a lose everything including your shirt. but I sold out long ago - too risky for me. Everyone knows when a company is in trouble and valuation of their assets plummet.

    @Laughton, held SMIF till recently. I switched to TFIF from same investment house, sacrificing a bit of yield but it has no gearing and has a high proportion of floating rate notes so figured it would be a better hedge against increased rates.
  • Still holding my wasps and hoping for a happy ending. Had a look online at their stadium, now re named The Coventry Building Society stadium. It looked very impressive and I noted seven and a half million is to be spent on establishing conference facilities. With speccies back at sporting events and hopefully no more covid lockdowns I remain optimistic
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