Category Archive: Sterling Bond Prices

Mar 15

Do high yield bonds outperform other asset classes? The race begins….

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 …

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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 …

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Jul 03

The Outlook for the Bond Market

In my comment on April 3rd, “Are Sterling Bond Prices in a Bubble?”, I concluded that, “Quantitative easing has led to an artificial bond bubble. Investors should be very cautious in committing new funds to UK fixed-income securities. Their risk / return profile is distinctly unappealing – none moreso than gilts issued by the UK …

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Apr 03

Are Sterling Bond Prices in a Bubble?

The news that Coutts, the private bank for high net worth clients, has just warned its clients against investing in high yield bonds brought to mind the analysis of a paper published many years ago in an Italian academic journal (“Dilemmas in Development Banking”, Savings and Development, Milan, 1985). Coutts is warning its clients against …

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