Looking for best 1 year fixed rate bond/ gilt

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82154003#Comment_82154003

I hope you understand that most of that gain will come at maturity in 2035, the actual coupon is 0.625% per year, so you won't get much payout if you were expecting 6% return paid to you every year.

itsme999

https://forums.moneysavingexpert.com/discussion/comment/82154293#Comment_82154293

I know get paid at end of term in 2035.

itsme999

https://forums.moneysavingexpert.com/discussion/comment/82154257#Comment_82154257

I said equivalent, meant effective when term ends in 2035.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/82154003#Comment_82154003

How did you manage that?

Scot_39

Tg35 is far from a 1 year bond - and its risk profile in past if not i hope now not suitable for short term holdings.

offering fairly flat to very negative (c18% drop) returns over a 1 yr window over last 5 years.

And opened about 0.40 - 0.6% - down this morning. Typical after I topped up my ladder 5k yesterday. But its a hold to par for me unless…..

might get out shorter term with better returns and not hold to maturity - if peace, intlation and rates return to lower levels - part of that 18% could partially reverse to best ytm - but that gamble onba small fraction of investments doesnt make it a good recommendation for this thread.

PS its currently trading around a c5.3% ytm, a guide if not actual reality, with the usual optimistic caveats (my platform charges for drip, tax on coupons etc).

Is your 6% a simplistic linear aver (total capital return or total return inc net coupon / total period say ), or a grossed up equivalent (say bond with all return taxed at 20 - soon 22% etc) ?

itsme999

https://forums.moneysavingexpert.com/discussion/comment/82154879#Comment_82154879

Yes should have said 5.4%

redpete

https://forums.moneysavingexpert.com/discussion/comment/82151854#Comment_82151854

I've bought gilts quite a lot of times over the last couple of years whilst building a gilt ladder to fund drawdown from my SIPP. I know exactly when I want the cash which is when each gilt matures, there is little chance of needing emergency access to the cash tied up in gilts, so I know exactly how much I will receive, I knew the yield at each purchase point and was happy with it.

So I have not done badly and I'm very unlikely to do badly.