Quick Poll - Bonds
09 July 2002, 11:22 AM
#1
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Just a really quick question and I don't want to get too deep into dicussion BUT
Would you buy a bond(s) that costs £500 that offered you 8% return p/a but it was tied in for 10 years.
What risks would you be suspicious of?
What questions would you ask?
Any constructive comments appreciated.
Cheers,
RichB
Would you buy a bond(s) that costs £500 that offered you 8% return p/a but it was tied in for 10 years.
What risks would you be suspicious of?
What questions would you ask?
Any constructive comments appreciated.
Cheers,
RichB
09 July 2002, 11:54 AM
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Yep, i would.
Ten year money market sterling swaps are trading around 5.50% right now, so that's a decent premium, if it's risk-free.
Who is offering that? What happens if the UK join the Euro? Is it stock market performance related in any way?
A financial adviser would probably tell you that 8% p.a. over a 10 year period is nothing special, but with stock markets as they are at the moment, it seems like a reasonable return to me, at least for part of a portfolio.
Terry
Ten year money market sterling swaps are trading around 5.50% right now, so that's a decent premium, if it's risk-free.
Who is offering that? What happens if the UK join the Euro? Is it stock market performance related in any way?
A financial adviser would probably tell you that 8% p.a. over a 10 year period is nothing special, but with stock markets as they are at the moment, it seems like a reasonable return to me, at least for part of a portfolio.
Terry
09 July 2002, 11:56 AM
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That rate is *very* good. I can only assume the issuer has very bad credit, therefore the risk you run is their going bankrupt etc and you only getting back a fraction of the capital you invest.
C
C
09 July 2002, 01:15 PM
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Appart from cash, Bonds are the safest investment. I would look for a bond with no less than a AA rating. a triple A rating is the best, but they usually offer about 5% which is about the norm. What's the issuing country, just out of interest?
All that craps My opinion. It's not advice
All that craps My opinion. It's not advice
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09 July 2002, 02:00 PM
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Sorry folks, the reason I am asking is because someone I know has a plan to get a company/organisaton out of a hole.
I was just asking the question to see what questions he would need to answer and also to see if that offer was of any interest.
If this does happen, which in all honesty is not that likely, I will post details here for all to see.
The reason I am not saying much more is that he wants to get something out of it for giving them the idea
Thanks for the repsonses and emails.
Cheers,
Rich
I was just asking the question to see what questions he would need to answer and also to see if that offer was of any interest.
If this does happen, which in all honesty is not that likely, I will post details here for all to see.
The reason I am not saying much more is that he wants to get something out of it for giving them the idea
Thanks for the repsonses and emails.
Cheers,
Rich
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