jaswells
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Post by jaswells on Apr 2, 2020 9:02:25 GMT
Significant update available online. About 20% returned. PG may be pursued.
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jaswells
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Post by jaswells on Apr 1, 2020 9:27:26 GMT
Standard Chartered also added to the main market today - not trading yet.
Note also: EDF has been moved from the Perpetuals to the main market. The Pension Insurance Corporation has been moved across from the High Yield market.
Standard Chartered bonds have now appeared. The cancelling of dividends by the banks today appears to have been forced upon them more than out of necessity so wouldn't see it as a major concern. This is investment grade rated Baa which would give it an approximate historical default rate of 0.3%.
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jaswells
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Post by jaswells on Mar 30, 2020 12:51:42 GMT
Yes, I guess raising finance must be a bit trickier in the present environment but it is great to see a fresh set of new bonds on the market. Investment grade BBB or better. As I have said before when normality resumes yields will be far far lower on these bonds. My only concern is the sum total of these 5 bonds is equal to the total of Eros International alone.
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jaswells
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Post by jaswells on Mar 30, 2020 12:03:02 GMT
Now available on the site
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jaswells
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Post by jaswells on Mar 29, 2020 9:07:08 GMT
The length of those bonds are ridiculous. Surely the bonds will last longer than the platform. And what are the selling charges if sold within 2 years ? True, but not as long as the perpetual bonds which , eeerrrrr, could go on in perpetuity. Having said that I have always found the secondary market fairly liquid, but as many have learnt elsewhere, this can never be guaranteed.
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jaswells
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Post by jaswells on Mar 29, 2020 0:34:40 GMT
Hi I am aware loanpad are doing well and so far seem unaffected by this crisis. What other platforms seem to be weathering this storm so far ? (Touch wood) Some would argue not technically p2p but Wisealpha is thriving under these strained financial times. Secondary market is very active and plans to increase product range in near future. It is easy to see why when your options are: 1) Lend to unsecured, unknown borrowers with likely poor credit ratings with provision funds for 3-4%- aka Zopa, Ratesetter etc 2) Lend to small developers or businesses with some degree of security but high risk in nature, - aka AC, FC etc for 4-8% 3) Lend to HSBC, BUPA, BARCLAYS, LLOYDS, M and S, Daily Mail etc for 4-5% Assuming platform risks are similar, surely this is a no-brainer?
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jaswells
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Post by jaswells on Mar 27, 2020 13:01:25 GMT
This was exactly what I was hoping for.......
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jaswells
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Post by jaswells on Mar 27, 2020 8:51:04 GMT
Thanks for some of your modus operandi treetophugger. Some interesting things to think about there.
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jaswells
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Post by jaswells on Mar 26, 2020 22:24:06 GMT
Agreed never a dull day right now! Treetophugger, where do you get access to the reports from the companies listed on WA? Do you have a one stop shop? I maintain that the bond market is the place to be right now. Many companies dividend yields will continue to be slashed or non existent for a while (had 4 companies I invest in cancel their divis just today) so income investors should be looking where coupon payments will continue to be paid. Are you keeping an eye on the ORB market?. There are some opportunities popping up there: LSE ORBATM got my eye on HSBC, Aviva, Ladbrokes, Teco and GE. The only issue is spreads are large in this market so quite hard to get the right price, but doable. Regards
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jaswells
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Post by jaswells on Mar 26, 2020 22:13:42 GMT
I would summarise my thoughts below:
1) Every p2p company and financial institution has a heightened risk profile ATM, unfortunately for regulars on these platforms p2p and junk bonds are at the riskier end of the spectrum.
2) Wisealpha's secondary market has been very active in the last few weeks. There have been sellers and buyers in relatively high volumes and some of the bonds have been available for the first time in a while.
3) B4 the crunch I felt WA was pushing the envelope a bit and offering riskier and riskier bonds just so there was some yield to offer e.g the bollywood crew). There is now many more opportunities and if at all possible WA should sieze this and get some safer companies on their site at reasonable yields. Financing this however could be tricky.
4) Some of the companies on the WA site will go pop. Travelex is the latest. There is a threshold here but it is very hard to see it getting as critical as many p2p lenders have become in recent months with defaults.
5) AFAIK Wisealpha run a lean ship. It wasn't so long ago that they detailed their monthly outgoings and income expenditures to illustrate this. In that respect, and their access to a liquid market , I don't foresee any reason for a selloff in their product for the foreseeable future.
6) The circumstances through which WA would see a dash for cash are ones in which the financial system would be under severe strain and equities far far lower than they are right now.
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jaswells
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Post by jaswells on Mar 26, 2020 12:55:53 GMT
Oct 2068. Cripes knowing I will not be alive when this one matures is food for thought. Good company, looks solid at 7.2%. IMO stuff like this is rich pickings for income investors right now. Dividends are being cut left , right and centre and cash savings will be devalued for a very very long time.
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jaswells
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Post by jaswells on Mar 26, 2020 12:27:01 GMT
Jesus, trying to make head or tail of that. No wonder some people are put off bonds based on their often complex nature.
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jaswells
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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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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
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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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