Hsbc Share Discussion Threads

[4spiel] 12/11/2015 22:47

Sitting in cash if you can get 2 per cent in sterling at present not to be sneezed at.particularly FSA guaranteed.Fixed interest could stay up but we don't know for sure how long and you must always think how much fixed interest has risen in a very short time for no better reason than - the trend is your friend UNTIL ! With sterling high it makes sense to be selective in hedging this with investments that will pay back when it turns as it probably will if only temporarily but enough to justify the strategy. Selective very much a matter of timing and these threads are useful to jog your memory when bottom fishing. Of course with fixed interest it depends what you paid. If you bought at 50 p now they are 130-150 you are getting the coupon and you have to work out how much pain you could take on a downturn and secondly remember that they might not all last forever. Expensive fixed interest -companies will try to replace with cheaper debt if they have to given that they have the credibility to raise replacement debt or the cash to repay. My view is that it's not the time to be buying fixed interest except on a short view in some circumstances in particular that interest rate rises are postponed. Bonds and fixed interest are interest rate susceptible primarily except where the viability of the issuing company is suspect. HSBA would not drop much if dividend were cut.It has dropped as has Banco Santander. The issue with equity dividends is how would they look with interest rates at say 3 per cent or even 4 ? Would increased rates benefit the company earnings or can they increase irrespective enough to provide sufficient premium over cash to be worth the risk ? HSBA is listed in sterling primarily but much of the earnings are without sterling. When sterling is high it is not sensible to sell and rush into too much LLOY despite the fact that a holding in LLOY at present price makes sense. Indeed a modest holding in both makes some balance taking care over timing is my view.

[my retirement fund] 10/11/2015 20:19

Indeed its all a matter of risk after all Icesave was a nice interest savings account and it went bust and the taxpayer had to repay savers and so far as im aware the British Government is still out of pocket!

[ianood] 09/11/2015 23:35

I just merely questioned "there is plenty of fixed income yielding upwards of 6.5%" and now realise that you meant by going a long way down the credit curve to perps and irredeemables and as exemplified by your mention of Co-op which almost went TU!

[zangdook] 09/11/2015 20:43

Got any other medical problems you want to whine about mrf? Perhaps this thread would suit:

[my retirement fund] 09/11/2015 17:16

Most reasonable irredeemables are 6.5%+ eg lloyds perpetuals. I wasnt thinking in terms of redeemables but ive seen decent stuff like recp on 5% whilst riskier coop is nearing 7.5%. As ive already stated if you want a risk less return why should anyone expect it given the economic reality we face!

[jeffian] 09/11/2015 16:26

I think he was querying your claim that "there is plenty of fixed income yielding upwards of 6.5%". I doubt there are (and I hold a number of corporate bonds). Most bonds paying those nominal yields are trading above par, so the real/redemption yield to anyone buying now is rather less. Any that are paying a current yield over 6.5% will have greater risk attached.

[my retirement fund] 09/11/2015 15:38

Perhaps the FIX thread may be a good place to start ianood

[ianood] 09/11/2015 15:04

My retirement fund
"For those considering a large single ISA investment rather than the above who cant bear a great deal of volatility they should be thinking in terms of a fixed income position, there is plenty of fixed income yielding upwards of 6.5%"

Please expand

[my retirement fund] 09/11/2015 14:13

Timing is everything however if your investing you should be doing so firstly on a longer term time frame and secondly if your entering positions afresh you should be looking to stagger your purchases to pound cost average.


Given the return via regular dividends here, losses will quickly be covered on capital loss.

Another thing, taking a single large position is foolish you need to spread your risk by divesting.

For those considering a large single ISA investment rather than the above who cant bear a great deal of volatility they should be thinking in terms of a fixed income position, there is plenty of fixed income yielding upwards of 6.5%

For those who want a return with zero risk dream on - we are in a long term low interest environment with longer term deflationary headwinds!

[mazarin] 09/11/2015 12:20

Marko, If it helps I sympathise and being similarly disappointed with HBSC ISA rate earlier this year moved mine to Virgin Money 2 yr fixed ISA . We've all endured small returns for savers for years now, its all very frustrating. And as for MRF's point, just for the record, instead of my usual Cash ISA investment this year, I bought £15k's worth of HBSA and currently am looking at £1,500 capital loss on that decision...! Only glad I didn't do it in April when I had the idea, it was bad enough in August So perhaps Cash ISA's aren't so bad after all.

[jeffian] 08/11/2015 23:22

#7015,

Aye, that's what I thought about Lloyds a few years ago..............

[onjohn] 08/11/2015 22:37

wonder if they will leave the UK? They've been saying it for a while

[my retirement fund] 08/11/2015 16:48

Your on a hiding to nothing having an ISA in cash much better own the shares !

[gateside] 08/11/2015 15:55

There's always HSBA shares with a nice 6% dividend

[my retirement fund] 06/11/2015 14:50

Clearly stronger dollar and higher US interest rate prospects putting a rocket under it, could see a significant breakout on technicals at this rate

[smurfy2001] 06/11/2015 14:44

Cracking recovery today.

Lord, got a CFD open and that's my exit price.

[lord gnome] 04/11/2015 16:56

Shurely shome mishtake shmurfy. Don't you mean 650?

[smurfy2001] 04/11/2015 13:23

Lovely rise, now get back to 550p please.

[my retirement fund] 04/11/2015 13:16

Regards bonds yields in sc report, surely retiring expensive debt for cheaper debt should not be ignored. HSBC have a lower cost capital structure! Sure in several years capital may cost more but so would average spreads significantly increasing revenue.Are these analysts qualified and are any of their reports peer reviewed?

[anley2] 03/11/2015 11:58

HSBC are in a strong position and can control all their costs centers. What they are doing at the moment is a world wide look at all segments which will enable them to finally decide what to develop and what to sell.
We already know that Turkey and Brazil may be sold and that will help increase the liquidity ratios and bring back capital for future lending.
I still have the feeling that the old Midland Bank will be sold off to shareholders but the Head Office will be Hong Kong and a secondary base in London.

Keep an eye on Standard Chartered and what the new man is up to as there is lots of business in Asia over the coming decade........and that is what one has to consider with HSBC..........how long to you want to be an investor in a bank that has never asked any government for any support.......that in itself shows huge strength.

Shore Capital wrote about short term matters so why not do some real resaerch and look at what could happen over the next 5 years.......I wonder if they could!!!!!

[speedsgh] 03/11/2015 09:31

Shore Capital warns on dividend pressure at HSBC -

Shore Capital is warning investors not to get blinded by HSBC’s (HSBA) strong yield, warning that the dividend could come under pressure.

HSBC is trading on a trailing yield of around 6.9%, with the shares having lost around a third of their value since hitting a post-credit crisis high of 759p in May 2013.

And while the bank reported headline profits jumped by a third in the third quarter, analyst Gary Greenwood said that rise was flattered by movements in bond yields affecting the bank’s debt.

‘We think this should be ignored as it is an accounting anomaly,’ he said, adding that adjusted profits down 14% at $5.5 billion (£3.6 billion) was more relevant.

‘While the headline beat will no doubt grab attention in the media, we would prefer to focus on the adjusted profit performance which missed consensus forecasts with top line weakness and cost inflation ongoing concerns for us,’ he said.

‘While it may be tempting to get excited by the attractive dividend yield, we believe that HSBC has significant structural issues to address which could still put downward pressure on long-term earnings and thus dividend prospects under pressure.’

Greenwood rates HSBC a ‘hold’. The shares fell 0.7% to 504.2p yesterday.

[my retirement fund] 02/11/2015 17:58

Yes I can see that, that's what happens when one picks a moniker and puts capital letters upon registration, then uses the account to post via a mobile phone android app Lord Gnome. I see you have capital letters as well. My grammatical patience reduces when posting from a phone. That aside I am diagnosed with dyslexia and I have to say its a poor show to start trying to pull anyone up on their writing.