garfield
Member of DD Central
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Post by garfield on Feb 3, 2020 12:25:25 GMT
The WA notes are 5% 2022.
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bababill
Member of DD Central
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Likes: 245
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Post by bababill on Jun 25, 2020 10:25:53 GMT
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bababill
Member of DD Central
Posts: 529
Likes: 245
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Post by bababill on Jun 25, 2020 12:07:21 GMT
The problem with this inefficient pricing is it also manifests itself when it comes time to sell the bond on the platform.
At the moment someone is trying to sell £85,000 of RAC and is unable to.
So I am looking at the pricing (esp long dated bonds) for when I am buying them now and then when I come to sell them at a later date.
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Post by easterndreams on Jun 25, 2020 14:03:46 GMT
This bond has been one of my big successes on the platform, up over 10% in maybe 18 months from interest payments and markups.
I definitely don't have £85k in it, but maybe someone else has had the same success and decided it's time to take-profit!
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bababill
Member of DD Central
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Post by bababill on Jun 25, 2020 14:28:23 GMT
"It becomes less of any issue, I believe, with my diversified, low commitment buy and hold approach."
Many of the bonds have a very long maturity date. How do you buy and hold?
Take the case of todays Bupa offering, 15 years maturity date from today and 4% gross.
How does one plan to hold these for that long?
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Post by Wisealpha on Jun 25, 2020 14:30:21 GMT
Hey, Just to clear up any confusion - these bonds rarely trade via the London Stock Exchange. Their pricing is generally off-market, Bloomberg has the best pricing information but even that be off sometimes on illiquid names with few market makers. Almost all high yield and the most of IG is traded over the counter with banks and prices aren't reported on exchanges. For example below is the bid and offer from Credit Suisse for the AA and RAC 1 hour ago. Different market makers have different prices and so we reference the offer side versus Bloomberg or where that is unreliable pricing sources from banks like CS for example (see our pricing policy here: www.wisealpha.com/pricing-policy). AABOND 5½ 22 85½ - 87½ RACLN 5 22 94⅛ - 97⅛ The offer price on WA is 87 for the AA and 96 for RAC. The seller here is a WiseAlpha entity, having purchased more for the market. Any clients who wanted to sell RAC would be pushed ahead of WiseAlpha to ensure everyone receives liquidity as quickly as possible. Eventually we envisage WiseAlpha becoming the main electronic trading venue for corporate bonds for retail (and perhaps institutional) investors in Europe. Things are in the works that could make this happen. Newsflow is being improved - see the new news centre - automatic email and app notifications coming next and more tailored options. Regards,
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