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bonds / gilts

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  • Altior
    Altior Posts: 1,014 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    I include NCYF in my portfolio. It's exposed to the stock market but underlying the trading are high yielding fixed interest securities. Not something to go all in on imo, but failing a black swan event, I expect distributions to remain consistent. So for me, a long term buy and hold. 
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    dannybbb said:
     i just hear a lot of talk about the stock market being overvalued,


    There are various stock markets. There are numerous stock indexes. Equities is a very broad generalisation. Covering a multitude of activities that company's undertake.  Worth spending some time researching and learning.  As there's a vast universe out there. That's far more complex than it might first appear. 
  • dannybbb
    dannybbb Posts: 152 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    @Hoenir i have read a lot over the last year but still feel like i know nothing, well, I know more than i did a year ago :) but still concerned about what I have in my sipp  which is why Im thinking of selling what i have and being more sure im doing the right thing. my sipp is 50 in balanced hsbc global and 28k in dynamic - thinking of at least selling the dynamic element for now


  • masonic
    masonic Posts: 27,193 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 24 February at 8:49PM
    Seems like you'd be a good candidate for using an IFA, being of quite a nervous disposition. It is a lot of money and therefore a lot of responsibility, so could be money well spent.
  • dannybbb
    dannybbb Posts: 152 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    yeah, ive actually reached out to a couple of local ones with no reply , will try some others
  • otherwayup
    otherwayup Posts: 85 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Just nosing around the internet/MSE forums and noticed the prices quoted on AJ Bell site for these two gilts.

    Issuer Coupon (%) Maturity date
    Price
    Treasury Index-Linked 0.125% 22/03/2026 0.125 22-Mar-26 98.7
    TR26 | GB00BYY5F144 | £      
    Treasury Index-Linked 0.125% 10/08/2028 0.125 10-Aug-28 98.69
    T28 | GB00BZ1NTB69 | £      

    As the coupon is very low, I take it the return is in capital gain at redemption.  If so, how on earth can they both have (virtually) the same current price, if the second one doesn't mature until 17 months after the first one?
  • masonic
    masonic Posts: 27,193 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 13 July at 6:16PM
    Just nosing around the internet/MSE forums and noticed the prices quoted on AJ Bell site for these two gilts.

    Issuer Coupon (%) Maturity date
    Price
    Treasury Index-Linked 0.125% 22/03/2026 0.125 22-Mar-26 98.7
    TR26 | GB00BYY5F144 | £      
    Treasury Index-Linked 0.125% 10/08/2028 0.125 10-Aug-28 98.69
    T28 | GB00BZ1NTB69 | £      

    As the coupon is very low, I take it the return is in capital gain at redemption.  If so, how on earth can they both have (virtually) the same current price, if the second one doesn't mature until 17 months after the first one?
    T28 is an index-linked gilt, so you would be getting the difference in RPI plus that capital gain and coupon. RPI in Aug 2028 is likely to be considerably higher than RPI in March 2026 (3 month lag noted).
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 13 July at 6:14PM
    Just nosing around the internet/MSE forums and noticed the prices quoted on AJ Bell site for these two gilts.

    Issuer Coupon (%) Maturity date
    Price
    Treasury Index-Linked 0.125% 22/03/2026 0.125 22-Mar-26 98.7
    TR26 | GB00BYY5F144 | £      
    Treasury Index-Linked 0.125% 10/08/2028 0.125 10-Aug-28 98.69
    T28 | GB00BZ1NTB69 | £      

    As the coupon is very low, I take it the return is in capital gain at redemption.  If so, how on earth can they both have (virtually) the same current price, if the second one doesn't mature until 17 months after the first one?
    Given the bonds are in essence identical. Why should their prices differ markedly when valued as at today. 

    These are clean not dirty prices though. Which factor in accrued interest etc. 
  • wmb194
    wmb194 Posts: 4,906 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 13 July at 7:04PM
    Just nosing around the internet/MSE forums and noticed the prices quoted on AJ Bell site for these two gilts.

    Issuer Coupon (%) Maturity date
    Price
    Treasury Index-Linked 0.125% 22/03/2026 0.125 22-Mar-26 98.7
    TR26 | GB00BYY5F144 | £      
    Treasury Index-Linked 0.125% 10/08/2028 0.125 10-Aug-28 98.69
    T28 | GB00BZ1NTB69 | £      

    As the coupon is very low, I take it the return is in capital gain at redemption.  If so, how on earth can they both have (virtually) the same current price, if the second one doesn't mature until 17 months after the first one?
    Because they're linkers. You can see the difference in yields between conventional, low coupon gilts of a similar tenor e.g., T26 3.21% vs TN28 3.62% and TG28 3.6%:


  • otherwayup
    otherwayup Posts: 85 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Thought I had it for a second; I saw the index ratio below and though, ahh at redemption, based on the RPI since issuance so far this will return capital at 142, instead of 100, but it can't be that you pay 98.68 now and get 142 in 3yrs can it?






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