cb25
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Post by cb25 on Dec 23, 2019 14:47:48 GMT
I've been looking at wisealpha, but have not yet invested.
One bond that caught my eye was the AA 5.5% 31 July 2022, currently showing as purchaseable for £87.5 per £100. What's the reason for the large discount?
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Post by dan1 on Dec 23, 2019 16:38:07 GMT
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cb25
Posts: 3,523
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Post by cb25 on Dec 23, 2019 17:29:15 GMT
I've had money in shares and bonds over the years, but always in funds (with the exception of shares gifted with employer schemes). I suppose my surprise - and the reason for the question - was the bond price suggesting investors consider there's a serious chance of The AA not being able to repay the bonds in as little as 2 and 1/2 years. I take the point about ICE, but wouldn't have thought that would have a huge effect over so short a time-frame. I guess I was making the mistake many have made over the years, of assuming that firms that have been with us 'forever' can't/won't fail. Clearly not the case.
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