Bonds / Gilts / T-Bills

[Pyros (Pyro)]

Anyone else in the community a investor into Bonds?

I know a few people use Premium Bonds but anyone invest directly into Bonds?

I own quite a few via Barclays and also I hold my Emergency Fund in a Bond ETF.

[Peter_G]

Have you checked out WiseAlpha?

A couple of topics that might tickle your fancy:

Wise Alpha

Everyday I seem to stumble upon another fintech company challenging an area of finance. Realise Wise Alpha has been around for a while, but anyone used it and have an opinion? Also, what’s the general view on corporate bonds on the ISA to Crypto scale…

WiseAlpha - Fintech Q&A!

[wisealpha_logo] Hey all! We’re back with another Fintech Q&A! Later this week, we’ll have the CEO Rezaah Ahmed here with us. [Rezaah_Headshot] Let’s find out a little bit about the company! Founded in 2014, WiseAlpha have received £3.65m in funding to date, including a £1.25 million crowdfunding round last year using CrowdCube! They are the UK’s first and only fixed income platform giving everyday investors and savers access to corporate bonds issued in the institutional…

[Pyros (Pyro)]

Corporate bonds are ones I have been looking at for a while. I have always stuck with G7 Government Bonds as I know they will normally always pay out.

I have heard before about Corporate Bonds not being paid out but they are rare cases.

But I have looked into it before as some of the yields are very attractive.

[Pyros (Pyro)]

@Peter_G This is your fault

[Ambassador_Spock]

@WiseAlpha - Fintech Q&A!

wisealpha

I admit I don’t know a whole lot about buying corporate bonds, but if Metro Bank is offering a bond paying 14% annually for the next ~8 years, why isn’t everyone buying them? Doesn’t that signa a fairly high-risk investment?

[Pyros (Pyro)]

@Ambassador_Spock

Doesn’t that signa a fairly high-risk investment?

Very high risk yeah. Metro’s is a 14% Yield paying out twice a year.

But with that yield being so high its a possibility that they don’t pay out. I have heard many corporate bonds that either paid late or have missed payments all together.

Some very nice yields though. But again its a high risk investment but i think i’m gonna buy some Metro bonds at 10.46%

[aCCount]

@Pyros

I own quite a few via Barclays and also I hold my Emergency Fund in a Bond ETF.

I don’t own any…

I’d looked at keeping my emergency fund in a money market fund (e.g. Amundi Smart Overnight Return GBP Hedged [CSH2]) but the rate of return isn’t that much better than a FSCS protected savings account.

On the basis of low upside and not really understanding the downside, I decided not to bother, but I’m interested to know if anyone else does anything else with their cash fund.

[Hunk_of_Cheese]

I’ve previously considered CSH2, but my tax return is complicated enough without having to mess about working out excess reported income from ETFs held outside of tax wrappers. Something like Royal London Short Term Money Market might be a bit less of a headache?

[Arnie7]

You can hold UK gilts and I think some of them are tax-free, though it’s been a long time since I used them so that may have changed.

[Pyros (Pyro)]

@aCCount

I’d looked at keeping my emergency fund in a money market fund

I hold my Emergency Fund in $WEEK.

Its a US T-Bill ETF that pays a Weekly Dividend at 4%. All of which get reinvested back into my emergency fund. The price of the ETF doesnt really move at all as its linked to T-Bills. So I trust it.

[Pyros (Pyro)]

I have sat and made a plan for some Corportate Bonds this evening. (I like excel )

Gotta wait for the 24 hour cool down period on WiseAlpha then on Monday I will show my holdings.