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Bond of the Week: 23 August 2013

How is the LSE Born on ORB Universe doing?


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...

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