jaswells
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Post by jaswells on Mar 17, 2020 10:31:47 GMT
Glancing through the bonds on Wisealpha now is like a child in a sweet shop if looking for Income. However, balancing risk in this environment is really tough. So, which offerings do you think offer the safest, yet tastiest yields.
My Top 3 are:
RAC- Solid balance sheet, Senior Secured Bonds (top of the pile)- tasty 9%
Royal London- Mostly pensions, been around forever, Senior secured, solid balance sheet- 6.2%
Refinitiv- Takeover over by LSE- safe as houses- 6.4%
I am wary of much of the double digit yielders. Travelex looks worthless now, and at least one or two others might follow. Any other thoughts?
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garfield
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Post by garfield on Mar 17, 2020 12:43:43 GMT
I'm just spreading it around. Bought more RAC amongst others. Pulled out of Robowise last Monday (9th) as it seemed to have a fit and gave us way too much of some bonds which I can't (don't want to) sell. So we're doing things manually for the foreseeable future.
We weren't in equities, but we've started to re-invest in those again (monthly contributions).
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garfield
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Post by garfield on Mar 17, 2020 12:44:32 GMT
Any thoughts on Vodafone?
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jaswells
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Post by jaswells on Mar 17, 2020 13:09:49 GMT
Vodafone, DP World and the Water Companies I consider the safest holdings on the Wisealpha Market. TBH with interest rates falling further when this present turmoil blows over you can guarantee you wont be getting 4%+ yield on these bonds.
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Post by kazamx on Mar 18, 2020 18:49:49 GMT
Well this is all very exciting,
Down about 10% at the moment so in a much better state than my share portfolio, but I guess the real question is how many are going to end up going bust. Trickling more money into both bonds and shares, some really cheap shares out their at the moment.
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jaswells
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Post by jaswells on Mar 19, 2020 7:05:51 GMT
During financial storms it is interesting how you become far more concerned over the financial stability of your investments and hence spend more time scouring over balance sheets etc. I have become highly skeptical when things like goodwill when they appear a significant part of their asset mix. This is critical when we look at the bond market and very real possibilities of default. Hence my reason to start this thread. Are any of the really high yielders actually pretty safe to hold?
I still find it tough to advise any of the double digit yielders, for example McClaren looks a basket case. Centre Parcs looks solid (9.2%) as does Voyage Care (13.9%), my main reservation here is that it is a relatively small company. As I said before, once all this settles most of the still low yielders- water companies, Vodafone etc, will seem incredible value. IMO they simply will not default on these loans and we will be returning to a zero interest rate environment.
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jaswells
Member of DD Central
Posts: 254
Likes: 184
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Post by jaswells on Mar 19, 2020 7:06:25 GMT
Interesting discussion on Lemon Fool (and others) about using the AIC to see what cash resevers IT's hold?
What was their advice?
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