Orb bonds

FRAM · 25 March 2017 at 7:05PM

I am an experienced bond investor. I am looking for bonds with a YTM higher than 6% for my ISA allowance. There is little available with this characteristics:
XS1112834608 EROS INTERNATIONAL PLC EROS INT 21
XS0880578728 ENQUEST PLC ENQUEST 22
XS0997703250 PREMIER OIL PLC PREMIER OIL20
I do not like Wasp Finance or IPF because of the business they are in.

Do you have any views on these issuers? These are all profitable companies!
EROS has been attached by short sellers last year but so far the financial performances have been strong although they seems to struggle to refinance existing debts
Enquest and Premier are both involved in oil production. No wonder they have been falling. The latest financial results show material profits.
Thanks for your views

dunstonh · 25 March 2017 at 7:47PM

You are probably asking in the wrong place. This site tends to deal with newer investors or those who stick to mainstream. You are looking at specialist unregulated investments of the type that only people who know what they are doing should utilise. The fact you need to ask on a site like this would lead me to ask the question whether they are right for you.

masonic · 25 March 2017 at 8:05PM

Are you just looking at short dated (<5 years)? If not, you could add Direct Line (XS0773947618) to your list, which at least doesn't look quite as risky as the others you mention.

There is a reason why these bonds have a high YTM (9-15%) in an environment where the typical corporate bond yields 2-3%.

Have you considered P2P as an alternative? Presumably this is just a small part of a wider portfolio of assets?

FRAM · 26 March 2017 at 4:53PM

Thanks for your suggestions. I am looking for someone in this Forum that holds the above bonds and can provide an insight on these issuers. Or suggestions on specialised Forum on this subject. I use and find extremely useful bonds Forum from other countries but since these particular bonds are only listed on the LSE and are relatively small issues nobody abroad follow them.

Thank you,

F

bowlhead99 · 26 March 2017 at 5:10PM

You'll get more in-depth discussion on individual companies at fool.co.uk or uk.advfn.com, or iii.co.uk, or perhaps london southeast (lse.co.uk). Here's an example from the latter http://www.lse.co.uk/ShareChat.asp?shareticker=PMO&share=PREMIER%20OIL%20PLC

Of course as with any open forum discussing investment and individual companies, you will find people talking a lot of crap and with hidden (or not so hidden) agendas and self-interest. Share discussion boards are like the wild west of investment community. And maybe more focus on the company as an equity prospect rather than on a specific issue of bonds.

However, once you've read the bond's prospectus and every RNS published since and everything said by their rivals, there are things you can learn about the issuer from what people are discussing about their prospects and what they are reading into the RNSs etc, even if those people have an equity focus rather than the fixed income perspective.

Another place that has some decent comment or analysis from time to time (rather than active discussion forums) is 'Fixed income investor' who do a bond of the week commentary - example http://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment&y=2017&aid=1515

Sometimes some useful stuff to be gleaned and they generally keep the yields up-to-date for their data pages, though if you are an active bond investor you're probably well aware of it.

FRAM · 26 March 2017 at 5:39PM

Thanks so much Bowlhead99. The only website that provides some useful info for my purposes is Interactive Investors although not to my complete satisfaction!
I have of course looked at prospectus, company websites, financials, RNS ,etc....and then added the above bonds on my selection list. For this type of issues is also incredibly useful to just use the Google news search option.
In my experience the commentary on some of these forums provide invaluable information very difficult to find otherwise. For example commentary on financial info not available in the official publications since not required by law. For a bond last month I have found information about private placements not available anywhere else.

Thanks a lot,

F

grey_gym_sock · 26 March 2017 at 8:08PM

a good specialist forum for discussion of UK bonds is https://www.fixedincomeinvestments.co.uk/boards/

(the fool.co.uk forums have closed, BTW.)

the enquest bond has had its terms amended, and now pays interest in kind (i.e. extra bonds) instead of in cash when the oil price is below a defined level (or something like that).

premier oil has been renegotiating terms on all its borrowings, and hopes to complete this by may. if this goes through as proposed, this retail bond would see a slight maturity extension and an increase in coupon (but no payment in kind - still paid in cash).

i hold some of the premier bond. would hope for a short-term boost in price if they get their restructuring proposals through as planned.

i also hold the IPF bond.

Orb bonds

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