Corporate bonds

[Russwhitehouse]

Gents.
Anyone have any experience with these? I am selling a couple of rental properties I own and have been doing some digging into where best to put the money.Corporate bonds normally seem to be the domain of institutions, but there are companies offering access to private investors, albeit with a pretty hefty punt. One i've been looking at is Geneve invest. Glossy website, usual assurances and warnings and a minimum punt of £50,000. I'm looking for a hands off passive income payable quarterly or six monthly which on the face of it, this could provide. Opinions anyone?

[Russwhitehouse]

Very true and something I have given thought to as well. Interesting to see how Brexit will affect rates given that it will happen during the duration of the bonds. Crystal ball anyone?

[Russwhitehouse]

sidicks said:

Russwhitehouse said:

Very true and something I have given thought to as well. Interesting to see how Brexit will affect rates given that it will happen during the duration of the bonds. Crystal ball anyone?

Are you planning on holding corporate bonds to maturity or trading bonds?
Are you planning on buying a bond fund or individual bonds?

Plan is to hold and probably buy a fund. By the way, forget what I said about Geneve invest. A little subversive digging has shown them to be dodgy, so I won't be touching them with a bargepole!

[Russwhitehouse]

sidicks said:

Russwhitehouse said:

Plan is to hold and probably buy a fund. By the way, forget what I said about Geneve invest. A little subversive digging has shown them to be dodgy, so I won't be touching them with a bargepole!

But a fund won’t be holding them. They will be trading them to try and outperform a bond benchmark.

And if the benchmark index falls, even if your bond manager does a great job and outperforms the index, you could still lose money.

Sorry, not making myself clear. I don't intend to buy and sell but rather buy a fund and let an "expert" do the dealing for me.

[Russwhitehouse]

sidicks said:

Russwhitehouse said:

Sorry, not making myself clear. I don't intend to buy and sell but rather buy a fund and let an "expert" do the dealing for me.

That’s wise.

But my point stands - you need to be sure that buying into a corporate bond fund is what you want to do, given the (negative) exposure that you will have to interest rates rising and to credit spreads widening!

Yes that's understood, hence my OP to get an idea how people far better qualified than me such as yourself feel.

[Russwhitehouse]

sidicks said:

Taxman10 said:

Apologies I probably wasnt clear - the bonds I have are "short term" between 3 and 5 years. They are property backed and pay interest quarterly and obviously the principal back at the end of the term - they arent publicly traded. Given they are property backed it feels unlikely that the principal wouldnt get paid in full at the end of the term.

to be able to invest you need to be a HNW individual and minimum investment tends to be between 10 and 50k

This sounds like the kind of thing I had in mind. Are you able to divulge a little more as to who you are with? A PM if further discretion required?