Retail Bonds?
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Discussion

xr287

Original Poster:

875 posts

197 months

Sunday 18th September 2011
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Anyone invested in retail bonds? Was looking at swapping what I have in premium bonds to some retail bonds for a more certain return. Buying them through a stocks and shares ISA.

I've been deciding whether they are worth it based on calculating yield to maturity and from that the present value but I've noticed that they are all priced within a few pence of what I calculate, which I'm assuming means they are generally priced right and there can't be much percieved risk and discount applied based on the fact that they could be defaulted upon.

My only concern is that the base rate goes up in a couple of years and the price falls so I'd feel stuck with them as the lower price to sell them on would mean my overall return would be low compared to just holding them to maturity.

anonymous-user

71 months

Monday 19th September 2011
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lots of chat in magazines about the forthcoming National Grid inflation linked bond

e.g. http://www.thisismoney.co.uk/money/investing/artic...