jester
Member of DD Central
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Post by jester on Jul 9, 2020 15:40:02 GMT
All I know for now is that I've just finished selling down some bits and pieces to fund some of this when it launches .... only to read it isn't eligible for my IFISA. FRUSTRATING!
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Post by nbk on Jul 9, 2020 15:51:32 GMT
Any views? I'm looking forward to seeing the mini prospectus, I'm not sure about my expectations of the yield. The vague comparison to "gilts" in the marketing material suggests it's going to be low. Have I missed a headline figure anyywhere? How like US muni's will they be? Again, in the marketing there's been talk of "perpetual retail bonds", the example given the more commonly know "war stock". So, the info I have gathered on this is :... - Not eligible for ISAs - Can be held in the Abundance SIPP - Have been advised that the council will withhold 20% tax of the interest paid (unless in a SIPP) as this is a type of Bond. Implies a claim to HMRC would need to be made to recover tax - No published return rate as yet. I'm expecting the return to be quite low to reflect the supposed reduced risk - so in the order of 2-3%. So, I think this investment is more about wanting to support a council in their Green efforts rather than getting a decent return
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Post by nbk on Jul 16, 2020 10:38:38 GMT
So the rates are out - 1.2% before tax. Interesting to see how much appetite is actually out there to invest at this level.
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Steerpike
Member of DD Central
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Post by Steerpike on Jul 16, 2020 10:44:22 GMT
So the rates are out - 1.2% before tax. Interesting to see how much appetite is actually out there to invest at this level. Particularly for a 5 year term.
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Steerpike
Member of DD Central
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Post by Steerpike on Jul 24, 2020 10:30:47 GMT
The £1m loan is over 30% funded a week after launch, I am mildly surprised given that there are a number of safer 3 and 5 year FSCS protected accounts on offer from banks that offer a higher interest rate. Perhaps investors accept the lower rate as a contribution to tackling the "climate emergency".
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Post by captainconfident on Jul 24, 2020 11:32:10 GMT
NS&I Income bonds 1,15% gross instant access. Is all I have to say.
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Steerpike
Member of DD Central
Posts: 1,977
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Post by Steerpike on Jul 24, 2020 11:53:22 GMT
NS&I Income bonds 1,15% gross instant access. Is all I have to say. That is where I have transferred my short term savings.
Minimum per investment £500, can't automatically reinvest interest, and clunky NSANDI website are the only minor niggles.
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Post by nbk on Aug 13, 2020 17:34:38 GMT
So, today we see that the Liverpool Community Homes is back available to Abundance investors for a very limited 10 days - not really enough time to arrange fund movements or say ISA transfers. This loan will actually be fully fulfilled (whatever is left) by Warrington Council on the same terms - so they'll get 8%. And then in next few weeks they'll launch their CMI at 1.xx%. If one was being cynical, you might think that Warrington Council is effectively funding their 8% investment by borrowing at 1.xx% via a CMI. The CMI isn't for me :.....
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Post by nbk on Aug 13, 2020 19:41:10 GMT
So, today we see that the Liverpool Community Homes is back available to Abundance investors for a very limited 10 days - not really enough time to arrange fund movements or say ISA transfers. This loan will actually be fully fulfilled (whatever is left) by Warrington Council on the same terms - so they'll get 8%. And then in next few weeks they'll launch their CMI at 1.xx%. If one was being cynical, you might think that Warrington Council is effectively funding their 8% investment by borrowing at 1.xx% via a CMI. The CMI isn't for me :..... I'm going to read the Prospectus with interest. I haven't been that impressed with the offers I've seen so far. Maybe this one. Who knows. I'm not holding my breath.
Does anyone knwo the history of this issue? Has it got a previous tranche or didn't they manage to get it away before?
The Liverpool deal looks OK (and the borrowers have a good history of payment on previous loan)- if you can move cash in there in time as offer lasts just 10 days for us retail investors. This deal was proposed back in Q1 - it filled to maybe 65% (I went in) , then it slowed down as Covid hit and they pulled it. Can't get any cash in there this time with such short notice otherwise I'd probably go for it.
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Post by GentlemansFamilyFinances on Sept 5, 2020 18:58:05 GMT
As funny as the marketplace is - I don't think that there will be any buyers at even 0.1% premium.
I didn't put any money in myself due to being short of cash and not attracted by the rates on offer but I suppose that there is an ethical case for investing (risking free) like this
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Post by GentlemansFamilyFinances on Sept 6, 2020 18:58:42 GMT
I meant riskish free - autocorrect fixed that ti risking free.
Personally I think that the marketplace seems to work ok if you need to sell or maybe buy.
I've sold some in the past and was grateful to eventually get what I wanted sold and a prices I was happy with.
On buying - I look at the IRR calculation and some are much better value than others although I am no expert in the risk premium/discounts that justify the prices. How others price what's for sale.in anyone's guess - the wisdom of the crowd perhaps
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Post by swissmate76 on May 26, 2021 20:50:39 GMT
the non isa one is going to be devoured by taxes, the isa one by inflation, afer buying i realised i was paying like us/sovereign bond rates
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Post by GentlemansFamilyFinances on Apr 27, 2022 19:48:59 GMT
New loan up for the C******s council.
Half a million quid at a rate of 2.1%.
The money will be spent on upgrading the council building and installing 20 Electric Vehicle charging points.
I invested for the prize draw entries.
This is the highest rate on a municipal bond and you can hold it in ISAs and SIPPs.
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jester
Member of DD Central
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Post by jester on Nov 1, 2023 6:03:19 GMT
BBC News - Warning one in 10 county councils face effective bankruptcy www.bbc.co.uk/news/uk-politics-67228883Why do I suddenly feel that even my council investments aren't feeling so safe anymore!! If they start to struggle there is a real risk my ENTIRE abundance portfolio will be in the red. |
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