Over the course of the current (2015/16) financial year, I have built up a portfolio of 12 of the highest yielding Sterling fixed-income securities generally available to a retail investor. These securities are held in an individual savings account (Isa). This is important, as it means that all interest accrues free of tax. As at …
Category Archive: High Yield Bonds
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Feb 16
Who’s afraid of the big bad bear?
An air of despondency hangs over the City of London, with security markets in steady decline, dragged down by the collapse in international commodity prices. In Aberdeen, Britain’s oil capital, the atmosphere is closer to panic. Property prices are tumbling, and many who want to sell are finding no buyers at all. In late January, …
Permanent link to this article: http://www.goldenguinea.com/whos-afraid-of-the-big-bad-bear/
Jan 12
The Kondratieff Wave and the Bond Market
Following commentary over the past three months on the Kondratieff cycle, the question has been raised as to how an investor can tell whether financial markets are in the upswing or downswing phase of a long wave. During the upswing, private sector investment is strong and rising; share prices increase over time in real terms; …
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Permanent link to this article: http://www.goldenguinea.com/palmerston-kondratieff-and-me-long-waves-in-british-financial-markets/
Jun 09
Eros International – the paradox of a low risk, high yield bond
It is a sign of the times, and the remarkably benign conditions prevailing in the London securities market, that no less than 103 of the 106 corporate bonds quoted on the LSE’s Order Book for Retail Bonds (ORB) are trading above their par value. This isn’t entirely good news for a bond investor. First and …
Permanent link to this article: http://www.goldenguinea.com/eros-international-the-paradox-of-a-low-risk-high-yield-bond/
May 12
High Yield Bonds and the Efficient Market Hypothesis
The proposition that investments in high yield bonds will generate returns that are greater than could be secured from other investments is contrary to the Efficient Market Hypothesis (EMH). If the EMH is correct, then it should be impossible for an investor in high yield bonds to generate excess returns. So the performance of the …
Permanent link to this article: http://www.goldenguinea.com/high-yield-bonds-and-the-efficient-market-hypothesis/
Apr 09
Rating Agencies and Bond Mispricing
As reported in March, over the coming months this site will report results of a real-time experiment in high yield bonds. Casting an eye over potential candidates for the High Yield Portfolio, my attention was caught by two rather curious features of the Co-operative Bank’s 11% Subordinated Loan Notes. These notes were issued in December …
Permanent link to this article: http://www.goldenguinea.com/rating-agencies-and-bond-mispricing/
Permanent link to this article: http://www.goldenguinea.com/a-real-time-financial-experiment-in-high-yield-bon-ds/
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