Where can I get 7% pa?

purch

Isn't Tesco selling some bonds paying around that amt?

Tesco Bank sold a 2018 Bond with a coupon of 5.2% last year, currently the YTM is about 4% as it's trading well above par.

Even the Provident Financial issues with coupons of 7% & 7 1/2% trade well over par so currently yield much lower.

If you want a yield of 7% in the Bond market you are looking at Junk currently :eek:

atush

I thought I read a few months back they were selling new ones (ie 2011/12) and not thru the bond markets but straight to investors.

casey_junior

If you lend me £250k, I'll pay you 7%, or even maybe 8%.

laurel7172

Zopa?

http://uk.zopa.com

jamesd

With no significant risk and full FSCS protection for your capital you can use the First Direct 8% regular saver for up to £300 per month for a year.

Some retail bonds pay over 8%, some into double digits for yield to call but with a long maturity - twenty years - to that call. Big insurers say.

Some funds (look at yield column) are paying over 7% with some capital value variation to be expected, check the charts before buying.

Some VCTs with significant risk have dividends over 8% apparently. But this isn't low risk.

Zopa at the moment is unlikely to pay more than 7% after fee, tax and bad debt and unlike the other investments can't be held in a tax wrapper to eliminate the tax. Even Zopa itself is currently quoting 6.4% after fee and before bad debt as the average return for December 2010 to November 2011.

fairleads

bigfreddiel wrote: »

As title suggests, and how risky would I have to be.

Or is this an improbable ask?

fj

As an afterthought, are you looking for 7% income, to live on say, or a compounded annual return on your investment of 7%?

gadgetmind

bigfreddiel wrote: »

As title suggests, and how risky would I have to be.

I've just added some infrastructure and property to a portfolio for diversity and to reduce volatility. I finally went for HICL, JLIF, LSP and UKCM. I expect all of these to have total returns of >8% pa and the former two to do it without any thrills and spills. I also tacked on BBGI, but this doesn't have much of a track record.

If you add to this some high-yield investment quality bonds and some high-yielding equities, you'll get more diversity.

Yes, all of this carries risk, but you're looking for a premium, and you need to take risks to achieve this.

If you want even higher returns, then you can buy banking preference shares such as LLPC that are currently trading below par, so double digit yields. There are two big risks, 1) Lloyds doesn't restart dividends, 2) Lloyds is fully nationalised.

More risk, more return. Such is the nature of the beast.