Gilt Coupons - Always the same?

zagfles

masonic said:

You would, but the dirty price you pay would include interest accrued to the date of purchase.

Or if you're in the XD period, then the seller would get the coupon payment and the buyer would receive interest for the few days through a lower dirty price.

Hoenir

zagfles said:

They also seem to prefund as I've sold funds which settle at T+4 and used the proceeds to buy gilts the day after the trade date of the funds (ie before settlement date).

FSA are looking into this practice. As technically the only funds available are those of other clients not the platform's own. Possible that reinvestment will become only possible on the availability of cleared funds. Uncleared funds being categorised as pending settlement on a clients own account.