bonds / gilts

Altior

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

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

@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

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

yeah, ive actually reached out to a couple of local ones with no reply , will try some others

otherwayup

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

otherwayup said:

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

otherwayup said:

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

otherwayup said:

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

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?