Ishrc � Discussion Threads

[kiwi2007] 25/11/2010 21:32

Spacecake - I'm not really sure however ISXF is SLXX but without the inclusion of the financials and,looking at the combined chart, perforemed only slightly better (by around 1%) since they both started to fall. SLXX fell further than ISXF this week but that's mainly due to it's going ex div of £1.6 whilst ISXF didn't.

[spacecake] 24/11/2010 19:17

Quite a bit clipped off the price since the start of november, is this connected to QE2 or Ireland issue or both ?

[kiwi2007] 19/11/2010 19:56

Looks likely that these will now touch £116'ish next week when they go ex div.

Blows my theory that they'd trade in the £120 / 124 range right out of the water :o(

[badtime] 16/11/2010 22:57

Cheers kiwi

[kiwi2007] 16/11/2010 19:03

6.06% flat - similar to the real UK inflation rate - goes ex div next week.

[badtime] 16/11/2010 09:45

Excuse my ignorance/laziness..but whats the yield on these?

[borderbill] 16/11/2010 09:20

kiwi, I never bothered selling, but had hedged the duration exposure with a short in gilt futures. That has been unwound, a bit early, and I may even be a buyer of long gilts again soon, Bill

[kiwi2007] 12/11/2010 10:00

Bought back in - in the hope that it's close to the bottom of it's trading range.

[spacecake] 23/9/2010 07:09

Wow, thats a big jump for a bond fund !

[borderbill] 02/9/2010 09:29

I agree, I hedged my position with a short position in gilt futures, in fact I am net short of the longer end now. I like the yield spread / dividends here though so will just hold SLXX medium term, Bill

[kiwi2007] 01/9/2010 13:16

I think we could perhaps see these fall back towards 120'ish and trade rangebound for a while?

[kiwi2007] 24/8/2010 11:15

RBS analyst this morning seems to be moving markets with :

".....We are oozing with bond bullishness, and have been throughout. Nothing has changed. The cycle is playing out exactly as we expected and has been very straightforward so far thanks to the utterly crushing forces of deleveraging & balance sheet adjustment which are bedrocks of our strategy themes. If (a big if) it continues to do so, we have high confidence that 10-yr bunds will be the first non-Japan major to have a 1.xx% handle in a very few weeks."

[borderbill] 18/8/2010 14:17

Kiwi, Still happy holding, it goes xd soon so will drop 1.6 then, not sure I woudl be as strong as to say conditions are "ideal" however. Gilt yields are very tight now and if the longer end cant sustain these levels then SLXX will struggle. I still like the yield however so will probably hedge the duration with a short position in long gilt futures at some point. That said dave your pick is much shorter dated and I will do some more research. Bill

[kiwi2007] 18/8/2010 11:45

"You've still got this Goldilocks path," Andrew Sutherland, head of credit at Standard Life Investments, said at his office in the Scottish capital. "Growth is enough to keep the deep-depression wolf from the door but on the other hand growth is not going to be too strong that it starts to raise worry about interest rates going up aggressively."

The Federal Reserve and the Bank of England last week both predicted weaker recoveries in the U.S. and British economies than previously expected as unemployment remains high and consumer demand picks up more slowly.

The MSCI World Index sank 4.2 percent between Aug. 6 and Aug. 13, the worst week in three months. In the bond market, U.S. Treasuries rose for a third straight week, with the 10-year yield falling to its lowest in 16 months amid concern that some economies are slipping back into recession.

'Double-Dip'

"There's a reasonable chance you're going to get some weakening economic data and then the markets inevitably will worry about double-dip at some point," said Sutherland. "There's an element of that in the market already."....

.....Conditions for investing in corporate bonds remain "ideal" and will likely remain so for at least the rest of the year, Sutherland said in an interview in Edinburgh on Aug. 13. "There are opportunities there," he said. .....

[davebowler] 17/8/2010 14:37

kiwi2007 I take your point, but half of HDIV is in loans, a good proportion of which are variable rate at a margin above LIBOR.Consequently if interest rates rise as many expect this yield will too (unlike SLXX).
Also I was surprised to see below that now it has 5% in high yielding blue chips.

[kiwi2007] 17/8/2010 14:17

davebowler.... Perhaps there's a good reason that HDIV trades lower? Management fees for one? Also, they are 'junkier' than SLXX - and I don't think that the slight difference in yield justifies the extra risk.

[kiwi2007] 17/8/2010 13:58

Borderbill...

The US perspective view of corporate bonds ;-

" Investor attitudes have shifted. They appear to be more nervous than ever about the economy and the markets -- but they have also decided that Blue Chip companies will carry on just fine. And that is helping to drive corporate bond spreads closer to dwindling Treasury yields, which is pretty unusual.

"I wouldn't be surprised if someday JNJ trades at a spread below Treasurys," says Jack Ablin, Chief Investment Officer, Harris Private Bank. "



I guess that there's a feed through to Stirling corporate bonds/gilts.

[borderbill] 16/8/2010 15:17

daveb, I will look at the holdings of these when I get time, thanks for suggestion.

kiwi, I suspect SLXX may struggle from here as I suspect gilts will top out at current levels, may look for a shorter dated corporate alternative.

Bill

[davebowler] 16/8/2010 14:44

ILH and HDIV still at a good discount to NAV and better value than this imho.

[kiwi2007] 07/8/2010 12:40

Better late than never...

Mark Dampier: Corporate bond offers the chance of excellent returns

[borderbill] 06/8/2010 14:08

Agreed kiwi, and the income will keep on coming. This has done me very well in recent years with little risk. Whenver I am not a holder I wish I was, so pleased to have got back in at recent lows. It seems to have cleared 120 comfortably now and as everything else looks such poor value (equities IMO and Govt Debt on these yields) I am a happy holder. Bill

[kiwi2007] 05/8/2010 15:13

Cheers BB... And with 40% of SLXX's holding being financials there's possibly room for a bit more upward movement - don't you think?

[borderbill] 30/7/2010 14:43

Thanks kiwi. Sounds good to me !

[borderbill] 30/7/2010 09:19

Popping its head over 120 today. Bill