Evening all,
As the title suggests, any HL users here? I'd like to park some funds in short term bond etf's or funds but they don't seem to have anything available?
I can use Saxo or IG to invest in BILS, ICSH, SHV, VUSB which are all short term US bond etf's with annualised rates of circa 3-4% (paid monthly) with little drawdown risk, but I'd rather use HL for the sake of transferring funds.
Any recommendations?
Thanks,
Phil
I was wondering the same thing - HL user not looking for the hassle of moving funds. checking over the weekend. Not much luck my side!
Are you using the HL App or the website? During the recent increase in uk gilt yields I purchased TR25 , TR27 and TR38. None of these were available on the app but could be purchased when on hl.co.uk
Hi Graham, thanks for your response.
Yeah, I logged online but no joy I'm afraid.
I looked at gilts but was a concerned of the drawdown risk as I will likely sell bonds before the end of term.
Few questions about gilts if you're able to help, are all notes issued at £100 nominal value? HL do not include the accompanying documents. So at expiration I can redeem the gilt at full nominal value?
For the TR25 notes, the running yield is below the coupon rate, so the bond is at a premium? 4.84% vs 5%.
The note price is £103.79, so on the assumption I hold to expiry the bond would loose a maximum of 3.79% (back to nominal value of £100), whilst returning 12.08% (29 months to expiry at 5%, 5%/12 = 0.42 x 29 months = 12.08%).
Final return would be 12.08% - 3.79% = 8.29%
Presume coupon is paid monthly?
https://www.hl.co.uk/shares/sh...
Many thanks,
Phil
Hi Phil,
All UK Gilts that I’ve seen have a nominal value of £100 so at redemption date this is what you’d get back. Coupon on the 3 that I have is paid every 6 months. Your calculation is correct from first glance.
