Gilt Ladder Builder site question

tigerspill

Looking at the https://lategenxer.streamlit.app/Gilt_Ladder for ILGs, it seems that some of the gilts (e.g. T33 and T28) are greyed out. Any idea what this means? There seems to be trades ongoing each day.

I wish to purchase some T33, but not sure if they are actually available or not?

QrizB

The ladder tool takes into account what you've told it about the date of payment, your cash interest rate and marginal tax rate.

The values you've set for those parameters mean that for that specific ladder you're better buying eg. A double helping of T29 rather than any T28.

If you change the parameters, the tool will buy different gilts in different quantities. T28 and T33 might come back into play.

It's not a judgement on the availability (or not) of T28.

InvesterJones

Probably just couldn't get any recent trade data.

Looking at https://www.londonstockexchange.com/stock/T33/united-kingdom/company-page it also doesn't report any trades so far today. Where are you looking to say there are trades ongoing each day?

Depending on your platform you could still put a trade in for filling at best available price, or offer more than 98.61 and you'll likely get some.

tigerspill

Thank you. Every day's a school day. Makes sense now.

tigerspill

https://forums.moneysavingexpert.com/discussion/comment/81965403#Comment_81965403

Thanks. Just purchased what I wanted at 98.250. Holding to maturity is the plan.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81965506#Comment_81965506

Cool. You're one of only two 'people' to have bought that gilt today :D

tigerspill

https://forums.moneysavingexpert.com/discussion/comment/81965841#Comment_81965841

Yep. I wonder why ILGs are so unpopular. They meet a need and to me, I would have thought that woulkd be popular.

olbas_oil

https://forums.moneysavingexpert.com/discussion/comment/81967113#Comment_81967113

Can you describe how they meet your needs? I can never understand Gilts!

masonic

https://forums.moneysavingexpert.com/discussion/comment/81967113#Comment_81967113

Are they unpopular, or is it just that investors in ILG have a different temperament to investors in stockmarket shares?

InvesterJones

I think they're incredibly popular, especially with large organisations that don't need to trade them every day. If they were unpopular we'd be able to get better prices when buying them!

QrizB

https://forums.moneysavingexpert.com/discussion/comment/81967267#Comment_81967267

In the context of a gilt ladder where gilts are held until redemption, gilts provide a guaranteed income stream in either nominal (via nominal gilts) or relative (via index-linked gilts) terms.

With nominal gilts, you could spend a sum of money today and guarantee a known sum of money being paid back at defined future intervals.

With index-linked gilts, you could spend a sum of money today and guarantee money with a known purchasing power being paid back at defined future intervals.

Yields on gilts are currently such that you can buy your future money at a discount. So it's cheaper than putting cash in a suitcase under your bed. There's also practically no investment risk (if the UK Government defaults on gilts we're in deep economic doodoo) and with ILGs you're covered for inflation risk too.