Bond of the Week

Yet another vacuous filler, as no new issues in sight. Price chart just shows the obvious, and switching from one ORB to another is usually pointless due to transaction costs and large bid/offer spreads on ORB. Early warning of detoriating credit fundamentals would be of interest, but that, of course, is not offered after issues are launched, so by the time we pick it up from the market, it is too late.

Comments

  • When looking at Paragon 2017 3.729%, does anyone now why the Yield to maturity never displayed ? I have never been able to dig up any info on this bond apart from the coupon reset statement. Does anyone have any other information ?
  • agreed fang. are there no retail bonds accessible on markets other than lse?
  • Morgle, earlier non-ORB retail bonds exist, see HL daily bond closing prices, for example but would by now be illiquid and hugely above par. Other new issues, very thin on the ground at present, are institutionally targeted and probably have 100k minimum, can see that easily reach 200k soon, if US/Euro markets to go by. Apart from this indigestible minimum amount, sterling issuance is no longer relevant to many corporates, reflecting their different market priorities. This in turn will make it easy for weak issuers to tap the ORB, as demand is strong and unfulfilled. Big trap for the unwary , risky times to come.
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