Post by Wisealpha on Dec 29, 2019 12:49:23 GMT
HARCA trades at 124 offer (Business Insider often has out of date data) which gives an implied yield of around 3.1%. It's traded well in price given ongoing low central bank interest rates.
I'm all in favour of these housing and regeneration (infrastructure) bonds from large, established companies but it's about timing the entry - at new issue is most obvious (when priced at par or 100) and because they are long dated understanding future central bank rate changes (i.e. the yield curve) at that moment in time.
If priced well, there is good capital appreciation but the inverse is also true. In any case its a sector we will look at in the future as we branch out into more bond areas, such as green bonds.
I'm all in favour of these housing and regeneration (infrastructure) bonds from large, established companies but it's about timing the entry - at new issue is most obvious (when priced at par or 100) and because they are long dated understanding future central bank rate changes (i.e. the yield curve) at that moment in time.
If priced well, there is good capital appreciation but the inverse is also true. In any case its a sector we will look at in the future as we branch out into more bond areas, such as green bonds.
