UK Treasury Gilt 4.75% 2035 new issue open for applications

Ciprico

So how do you buy it

poseidon1

Ciprico said:

So how do you buy it

Unless you already have an ISA, Sipp or GIA account with one of the major platforms ( ii, HL, A J Bell etc), may not be possible at this late juncture to subscribe commission free by the Monday deadline.

I applied for my allocation from my ii sipp account  via ii's IPO page below -

https://www.ii.co.uk/ipos#current

You will of course be able to buy on the open market via a platform or your brokerage in the normal way, when trading starts next week.

Depending on sentiment it might trade below or above the syndicate strike price, and of course you may have a commission charge and maybe a small amount of accrued income to contend with.

leosayer

phlebas192 said:

poseidon1 said:

Cus said:

If there is a drive to attract retail bidders then the cynic in me reckons that institutional bidders value it less

We retail applicants don't get a look in where pricing is concern ( we are a tiny drop in the ocean).  The institutional syndicate will set the bid price, which I am hoping will be a shade under face value.

Indeed, this is worth emphasising. With a syndicated launch like this issue, retail investors are simply being offered the opportunity to purchase at the price agreed with the syndicate. For issues where the price is determined by a competitive auction, retail investors pay a price equivalent to the volume weighted average of the successful bids. In both cases, retail investors contribute a tiny portion of the overall value raised and have absolutely no influence on the average cost to the government.

As small time retail investors, we should welcome the opportunity to "get in" at the same prices as the institutions pay. This is undoubtedly a "good thing" which wasn't available to us even a few years ago.

What does the typically mean in terms of price paid compared to buying on the secondary market?

No spread or something more?

aroominyork

InvesterJones said:

masonic said:

InvesterJones said:

ThiftyBrit said:

How long are those guilts? Seems to me they would be a long lock in?

Until 2035 - I guess september or october? There is no lock in with gilts, you can sell them on the secondary market any time.

It's T35 isn't it? In which case 7th March 2035.

T35 is 4.5%. I can't see a ticker on the new application, presumed it would be a new one.

The Press Notice on Interactive Investor is headed 4T35. Maybe that will be its ticker. It would be a new format, intended to confuse us oldies who cannot keep up with changes in car license plate formats.

masonic

leosayer said:

phlebas192 said:

poseidon1 said:

Cus said:

If there is a drive to attract retail bidders then the cynic in me reckons that institutional bidders value it less

We retail applicants don't get a look in where pricing is concern ( we are a tiny drop in the ocean).  The institutional syndicate will set the bid price, which I am hoping will be a shade under face value.

Indeed, this is worth emphasising. With a syndicated launch like this issue, retail investors are simply being offered the opportunity to purchase at the price agreed with the syndicate. For issues where the price is determined by a competitive auction, retail investors pay a price equivalent to the volume weighted average of the successful bids. In both cases, retail investors contribute a tiny portion of the overall value raised and have absolutely no influence on the average cost to the government.

As small time retail investors, we should welcome the opportunity to "get in" at the same prices as the institutions pay. This is undoubtedly a "good thing" which wasn't available to us even a few years ago.

What does the typically mean in terms of price paid compared to buying on the secondary market?
No spread or something more?

You'll be buying at auction within a pool of discerning bidders. Potentially this could result in a more attractive price vs the secondary market, although the one that was auctioned last week seems to have achieved a very similar price to its closest sibling. If you want a gilt of the duration being offered in a new issue, then it probably makes sense to take advantage. It is probably rare that such an opportunity will come up with the right duration and at the right time though. I wouldn't be waiting in the wings with cash for such an issue to happen.

phlebas192

For anyone who bought these:

SYNDICATED LAUNCH OF £14.0 BILLION OF 4¾% TREASURY GILT
2035: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated launch
of £14.0 billion (nominal) of 4¾% Treasury Gilt 2035 has been priced at £98.972 per £100
nominal, equating to a gross redemption yield of 4.8786%. The transaction will settle, and
the initial tranche of this gilt will be issued, on 3 September 2025

https://www.dmo.gov.uk/media/sjrf3xdz/pr020925_2.pdf

poseidon1

phlebas192 said:

For anyone who bought these:

SYNDICATED LAUNCH OF £14.0 BILLION OF 4¾% TREASURY GILT
2035: RESULT
The United Kingdom Debt Management Office (DMO) announces that the syndicated launch
of £14.0 billion (nominal) of 4¾% Treasury Gilt 2035 has been priced at £98.972 per £100
nominal, equating to a gross redemption yield of 4.8786%. The transaction will settle, and
the initial tranche of this gilt will be issued, on 3 September 2025

https://www.dmo.gov.uk/media/sjrf3xdz/pr020925_2.pdf

Just had confirmation of my allocation in my HL account today to this effect. 

There is a possibility price could go lower in the open market, given current pessimism around gilts at the longer end. If so just might pick up some more commission free via my ii account over the next few days. 

aroominyork

Its name is T35V. Cute.

poseidon1

aroominyork said:

Its name is T35V. Cute.

HL opening pricing suggests £98.95-£98.96 to buy.