12.5% interest on Standard Chartered bond

eeja

For those who feel confident this well respected UK bank will not go belly up, could there be a more rewarding investment ? Please see the link below . Click on yield chart at the top and your opinion / view much appreciated .

http://www.fixedincomeinvestor.co.uk/x/bondchart.html?id=231&stash=B1275B0&groupid=4

maximus7575

Sounds really good but how do you buy it?

sabretoothtigger

When does it expire, there is a boots one that gives back 14.6% next may.


You need 100k max then find someone willing to sell you a bond at that price

purch

You need 100k max then find someone willing to sell you a bond at that price

Why do you need £ 100K for either this or the Barclays perpetual ??

If there was a minimum then Bondscape would not be a market maker in this issue.

P.S. You will struggle to get a dealing price from any of the market makers on this Bond, the Barclays perps or the semi-junk Boots issue maturing next year.

sabretoothtigger

Are they pibs then, whats the minimum for them

purch

PIBS are usually £5K or £10K, but there are a couple of issues, notably from the Halifax what were for £50K minimums.

sabretoothtigger

The yield on standard chartered shares is presently 10.66% and the prospects for growth, who knows but in october they gained back 50% before losing it again

52wk Range: 664.50 - 1,903.00
Annual report: 28/02/2008

They invest in emerging markets apparently, especially the far east which surely makes them a great share in comparison to our own much more western banks.

Their tier 1 ratio is apparently not especially great but didnt they recently have a rights issue. These are also the guys who came up with the government bank plan - ironically.
I remember the telegraph tipped them at £10

http://uk.finance.yahoo.com/q?s=STAN.L


http://uk.stoxline.com/q_uk.php?s=STAN.L

EPS
2003 - 0.81
2007 - 2.01

Still operating off their 2003 lows, will eps drop that much

eeja

sabretoothtigger wrote: »

The yield on standard chartered shares is presently 10.66% and the prospects for growth, who knows but in october they gained back 50% before losing it again

They invest in emerging markets apparently, especially the far east which surely makes them a great share in comparison to our own much more western banks.

Their tier 1 ratio is apparently not especially great but didnt they recently have a rights issue. These are also the guys who came up with the government bank plan - ironically.
I remember the telegraph tipped them at £10

http://uk.finance.yahoo.com/q?s=STAN.L


http://uk.stoxline.com/q_uk.php?s=STAN.L




Still operating off their 2003 lows, will eps drop that much

Fascinating, interesting but not about their bonds !
Of course the share price of a bond issuer is important as it might indicate a possible bankrupcy looming but not in this case.

97trophy

eeja wrote: »

well respected UK bank

Sorry I just don't think such an animal exists.

Good luck but too risky for me.

sabretoothtigger

Without being an accountant with all the relevant info its hard to disagree with that but this is not a typical bank. The far eastern banks didnt invest in sub prime afaik and this is closer in relation to them then our own high street banks.

Also their deposits exceed their loans also unlike most of our banks

eeja, normally you'd be right but somehow I think the biggest factor in both cases would be the same risk of extreme liabilities plus the shares are available to anyone any time they like the odds

sdooley

There are many risks - just one is that many bonds are 'priced to call' - there has been an implicit assumption that the banks will repay debt on the first available opportunity rather than face a step-up in interest rates/coupon. In other words what looks like e.g. 4 years to call could switch to a 30 year term or even perpetuity.

There is no guarantee your bond will rise in value on the market before the value of the coupon is whittled away by inflation. Unless you know more than me, which is quite easy to achieve!`