REA Finance 9.5% Bond 31st Dec 2017

Oliver

Many thanks for another excellent write up

I for one am very much interested in getting information on some of the more (to us small private investorts at least) remote bond issues, and this was well received by myslef at last !

I telephoned Selftrade earlier - they did not have this bond on their system but they very quickly managed to set it up. It took them a little while (about an hour) to find the few that I wanted - they were successful though and the trade was closed a few minutes ago.

I paid 101p for them, which I still thought worthwhile

The EPIC code for these is 70NR


007

Comments

  • Have you hoovered them all up 007 or are there still some loose?
  • Nah - I'm small fry - I bought 5K worth with the bit I had left un-invested in my ISA


  • Bond007
    Can I ask what accured interest you paid per 1000 as I seem to have only paid £1 per 1000 ?
    Thank you
  • Hind

    I received about £8 per 1000 shares, being 31 days interest from settlement day to payment of the interest on 31st December (which I won't get in this instance having received it in this fashion)

    I must admit I have never seen it treated this way before - usually for bonds I have paid accrued interest and then received the next payment in full

    Have you got your Contract Note yet to see exactly what is going on ?

    007
  • Re my previous post - looking into it since writing the above, my purchase of these bonds is being settled on or just after whatever a bond equivalent of the ex div date is called.

    (The prefs have just gone ex div and they pay interest on 31st Dec as well)
  • Hind

    Ok - have just received an amended Contract Note from Selftrade

    Things back to normal

    Paid 101p for them plus 153 days accrued interest

    (25.8157 pence per day per 1,000)



    007

  • Bond007
    Thank you for reply
    Now got amended contract note and its £39.50 per 1000 which is right with spreadsheet now so same as you on that and purchase price via Idealing
    H
  • So are they cum div or ex div?

    And they sink I think at the next coupon so if they're ex div does that include the principal payment? Just a bit confused here on these
  • I had assumed that they always trade "clean" and you pay accrued interest on purchase and receive interest when selling - this appears to be borne out by my amended contract note


    (I wonder though what happens if you purchase 1 or 2 days prior to the interest being paid - "the system" must be tracking who owns the bond in almost real time ??? - does CREST do that ??)

    I don't think that they will sink as according to Oliver B

    There is a sink on this bond but it will not come into effect as bonds that have already been repurchased by the company will be used to fill in the sink.


    Cheers

    007

  • Gotcha, thanks for clearing up 007, so it's a bit more vanilla, good

  • Have just received the proceeds from repayment of these - needless to say, I wish I had bought more.

    Wonder if they will have any further issues in the near future ?
  • Wozzitworthit, should there have been a final interest payment along with the £1 par repayment

  • Yes there was and I have received that as well

    Woz
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