Analysis & Comment > Bond of the Week
Back to 2013
Bond of the Week: 23 August 2013
Bond of the Week : 23 August 2013
Since the launch of the ORB market we've been tracking those bonds that have been issued directly into the new market in our Born on ORB universe. For those that don't already know the ORB (Order book for Retail Bonds) was launched by the LSE to provide continuous two-way pricing for retail size bonds in the UK.
Interestingly, only one of these bonds is trading at a discount to par (the Tullet Prebon 5.25% 2019), although it did have a strong start, trading up to 102 after being issued at the end of 2012. We covered it in our bond of the week here.
Of the other twenty one bonds all are trading above par. Strongest performers are the Severn Trent 1.3% RPI linked 2022 bond and the Provident 7% 2020, although that has had a rocky ride recently trading as high as 114 and 115 (covered in the march 2012 bond of the week).
The average bond price is just above 104 with the average yield just shy of 5%. We are expecting to add a few bonds for the model portfolio in the coming weeks and months. We've not heard and rumours of new retail bonds as the summer comes to a close, but that is not to say there is nothing due...
www.fixedincomeinvestor.co.uk is a division of Stockcube Research Ltd which is authorised and regulated by the Financial Services Authority. The research provided by Stockcube on the Website (and any other Stockcube website) is provided solely to enable investors to make their own investment decisions and does not constitute personal investment recommendations. No recommendations are made directly or indirectly by Stockcube as to the merits or suitability of any investment decision or transaction which may result directly or indirectly from having viewed the investment research on the Website or having received it by email. Investors are therefore urged to seek independent financial advice if they are in any doubt. The value of investments and the income derived from them can go down as well as up, and the investor may not get back the full amount originally invested.
Bonds, as with all investments, are subject to price volatility and in the event of a default an investor may lose some or all of his or her original investment. This site also contains references to derivatives. These are particularly high risk, high reward investment instruments and an investor may lose more than his initial margin requirement. Some foreign currency instruments are also featured and if an investor decides to acquire any investment denominated in a currency different from the his or her own, the investor should note that changes in foreign exchange rates may have an adverse effect on the value, price and income of the investment in the base currency.
None of the services provided as a result of this agreement constitutes a personal recommendation to invest from Stockcube and no service should be construed as such. For the avoidance of doubt, where the word “recommendation” is used elsewhere in these terms it does not refer to a personal recommendation, unless this is explicitly stated. The investments described by or in the services are not suitable for all investors. Investors who have any doubt about whether particular investments are suitable for them should contact an independent financial adviser.
These services do not include personal investment recommendations from Stockcube and should not be construed as such. Stockcube may, at its discretion, provide information, advice, recommendations and research to subscribers from time to time on its own initiative or advise subscribers of other services available. Stockcube will be under no obligation to provide on-going advice in relation to financial instruments covered on this website.