3.5% War Stock

Mikeyorks

Taff_major wrote: »

They have no memory of any interest having been paid, would this only have been done on redemption? If the certificate is still valid, how do they go about cashing it in and how much might it be worth?

Interest was paid half yearly (June & Dec from memory). Used to be Bank of England .......... but moved to Computershare as 'registrars' several years ago.

I sold the one's that are the subject of the original post by writing to :-

Computershare Investor Services
PO Box 2411
The Pavilions
Bridgwater Road
Bristol
BS3 9WX

............ they do have an Email facility for tracing if certificates are still valid - but I'm unsure if that includes War Stock. I made an initial call on this number :- 0870 702 0003

sabretoothtigger

Must be the best time to sell them for a generation. Most of the time these wont have covered inflation losses even. Even if it appears a good deal, theres similar available where you can redeem your money

Sceptic001

Reaper wrote: »

...in 1932 the governement shamefully declared they would not honour their debts. They reduced the interest rate to 3.5% and removed the maturity date.

Oooerrrr... let's hope no-one from the government is reading this...:eek:

ffacoffipawb

Sceptic001 wrote: »

Oooerrrr... let's hope no-one from the government is reading this...:eek:

Don't worry, since early May I think we are safe for 5 years at least from financially illiterate (champagne) socialists.

862porlock543

Can anyone tell me who are the Registrars for 3.5%War Stock now please ?

Yorkie1

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JohntheViking

I reckon ..... BEFORE the Next War breaks out.

Although it's rumoured that the Gov. might be thinking of calling it in anyway.

chris40

War Loan has always had a poor name but consider this: the yield is above 4%. inflation linked gilts offer no postive yield over the rate of inflation which is hovering around 2.7%. Where else can you get a REAL return of 1.3% with no risk of default? Yes, of there is a risk but if the UK turns its toes up then nothing else will be worth having either. There is a risk that the rate of inflation will exceed the current yield and at that time a sale would probably be at a loss but if the best joint life annuity alternative is 4% ( my wife is just fifty) then who wants to sell.
My crystal ball is a little murky just now so I prefer not to speculate on some overpaid managers !!!! up in ordinary shares.

JezR

3½% War Loan should have been called when it was above par and replaced by a lower coupon stock as 5% War Loan was in 1932 - there probably won't be another opportunity in a lifetime.

kidmugsy

Reaper wrote: »

Originally they were sold as paying 5% and would be redeemed by 1947. Instead in 1932 the governement shamefully declared they would not honour their debts. They reduced the interest rate to 3.5% and removed the maturity date.

Shame on you: that's not what happened. The original bumf stated "If not previously redeemed, the Loans will be repaid at par as follows:—
£5 per cent. War Loan, 1929-1947, on the 1st June, 1947 but His Majesty's Government reserve to themselves the right to redeem the Loans at par at any time on or after the undermentioned dates, on giving three calendar months' notice in the London Gazette;
£5 per cent. War Loan, 1929-1947, at any time on or after the.1st June, 1929".

So the government was entitled to "call" the loans as early as June 1929. Calling them in 1932 was therefore entirely legit.

Why do people make up these exciting stories which just aren't true?