Corporate Bonds

Fed up talking videogames? Why?
User avatar
lex-man
Member
Joined in 2008
Contact:

PostCorporate Bonds
by lex-man » Wed Apr 18, 2018 12:28 pm

Does anyone have any experience buying corporate bonds? I'm especially interested in finding reliable places to buy them from? I'm a bit worried spending thousands on a website I don't know much about.

User avatar
Preezy
Skeletor
Joined in 2009

PostRe: Corporate Bonds
by Preezy » Wed Apr 18, 2018 12:49 pm

No experience myself but it's something that's of interest. Who are you looking to buy bonds from?

I think when dealing with scary financial companies just make sure they're authorised and regulated by the FCA and PRA and you should be (relatively) safe. Top results on google are normally there for a reason, too.

Good luck!

User avatar
lex-man
Member
Joined in 2008
Contact:

PostRe: Corporate Bonds
by lex-man » Wed Apr 18, 2018 1:03 pm

Preezy wrote:No experience myself but it's something that's of interest. Who are you looking to buy bonds from?

I think when dealing with scary financial companies just make sure they're authorised and regulated by the FCA and PRA and you should be (relatively) safe. Top results on google are normally there for a reason, too.

Good luck!


I'm really that fussy, I just figure that I'll get a better rate of interest putting my money in company bonds and not have the risk of stock market stuff.

User avatar
Grumpy David
Member
Joined in 2008
AKA: Cubeamania

PostRe: Corporate Bonds
by Grumpy David » Wed Apr 18, 2018 1:14 pm

Charles Stanley Direct is the trading platform I used.

Are you looking to buy individual corporate bonds or a bonds tracker? Why have a portfolio of just one asset class and not diversified to include stocks and government bonds or even REITs?

What is your timeline for when you want the money back?

User avatar
lex-man
Member
Joined in 2008
Contact:

PostRe: Corporate Bonds
by lex-man » Wed Apr 18, 2018 1:26 pm

Grumpy David wrote:Charles Stanley Direct is the trading platform I used.

Are you looking to buy individual corporate bonds or a bonds tracker? Why have a portfolio of just one asset class and not diversified to include stocks and government bonds or even REITs?

What is your timeline for when you want the money back?


I've been saving in ISA's for years but have just opened a help to buy ISA which means that I could only put 1200 in to start. I have another savings account but can only add £250 a month. Was planning on trying to buy a house in a year. My reason in wanting bonds was that their was very little risk involved, I have a look at Charles Stanley Direct thanks for the advice. I'm interested in getting in to share trading but am not quite ready to make that level of investment.

User avatar
Grumpy David
Member
Joined in 2008
AKA: Cubeamania

PostRe: Corporate Bonds
by Grumpy David » Wed Apr 18, 2018 1:35 pm

lex-man wrote:
Grumpy David wrote:Charles Stanley Direct is the trading platform I used.

Are you looking to buy individual corporate bonds or a bonds tracker? Why have a portfolio of just one asset class and not diversified to include stocks and government bonds or even REITs?

What is your timeline for when you want the money back?


I've been saving in ISA's for years but have just opened a help to buy ISA which means that I could only put 1200 in to start. I have another savings account but can only add £250 a month. Was planning on trying to buy a house in a year. My reason in wanting bonds was that their was very little risk involved, I have a look at Charles Stanley Direct thanks for the advice. I'm interested in getting in to share trading but am not quite ready to make that level of investment.


I wouldn't bother with corporate bonds if the timeline is just a year.

Buying individual shares is for mugs. Stick to index trackers. Read the website Monevator.

Depending on the lump sum you have, I'd either do peer 2 peer finance or premium bonds.

User avatar
lex-man
Member
Joined in 2008
Contact:

PostRe: Corporate Bonds
by lex-man » Wed Apr 18, 2018 1:43 pm

Grumpy David wrote:
lex-man wrote:
Grumpy David wrote:Charles Stanley Direct is the trading platform I used.

Are you looking to buy individual corporate bonds or a bonds tracker? Why have a portfolio of just one asset class and not diversified to include stocks and government bonds or even REITs?

What is your timeline for when you want the money back?


I've been saving in ISA's for years but have just opened a help to buy ISA which means that I could only put 1200 in to start. I have another savings account but can only add £250 a month. Was planning on trying to buy a house in a year. My reason in wanting bonds was that their was very little risk involved, I have a look at Charles Stanley Direct thanks for the advice. I'm interested in getting in to share trading but am not quite ready to make that level of investment.


I wouldn't bother with corporate bonds if the timeline is just a year.

Buying individual shares is for mugs. Stick to index trackers. Read the website Monevator.

Depending on the lump sum you have, I'd either do peer 2 peer finance or premium bonds.


Thanks, I'll definitely have a look.

User avatar
Preezy
Skeletor
Joined in 2009

PostRe: Corporate Bonds
by Preezy » Wed Apr 18, 2018 2:23 pm

Surely there are still inherent risks in buying corporate bonds in that the company you're buying bonds from might get into financial problems and not be able to pay up on maturity? I'm sure there are safeguards but that seems a risk to me.

User avatar
lex-man
Member
Joined in 2008
Contact:

PostRe: Corporate Bonds
by lex-man » Wed Apr 18, 2018 2:25 pm

Preezy wrote:Surely there are still inherent risks in buying corporate bonds in that the company you're buying bonds from might get into financial problems and not be able to pay up on maturity? I'm sure there are safeguards but that seems a risk to me.


Sure, also the company could go under but companies like Apple, Microsoft and Shell issue bonds on a semi regular basis.

User avatar
Grumpy David
Member
Joined in 2008
AKA: Cubeamania

PostRe: Corporate Bonds
by Grumpy David » Wed Apr 25, 2018 12:33 am

lex-man wrote:
Preezy wrote:Surely there are still inherent risks in buying corporate bonds in that the company you're buying bonds from might get into financial problems and not be able to pay up on maturity? I'm sure there are safeguards but that seems a risk to me.


Sure, also the company could go under but companies like Apple, Microsoft and Shell issue bonds on a semi regular basis.


This is why you don't buy bonds from individual companies or shares from individual companies.

You buy trackers for corporate bonds, government bonds and also for equities. Spreads the risk around.

User avatar
lex-man
Member
Joined in 2008
Contact:

PostRe: Corporate Bonds
by lex-man » Wed Apr 25, 2018 12:50 pm

Grumpy David wrote:
lex-man wrote:
Preezy wrote:Surely there are still inherent risks in buying corporate bonds in that the company you're buying bonds from might get into financial problems and not be able to pay up on maturity? I'm sure there are safeguards but that seems a risk to me.


Sure, also the company could go under but companies like Apple, Microsoft and Shell issue bonds on a semi regular basis.


This is why you don't buy bonds from individual companies or shares from individual companies.

You buy trackers for corporate bonds, government bonds and also for equities. Spreads the risk around.


I don't know the changes that a large multi national company would default on a loan seems pretty slim. That said I think I'll take your advice anyway. Sadly at the moment my money situation has changed again and I think I'm going to have to hold off on buying bonds.

User avatar
Grumpy David
Member
Joined in 2008
AKA: Cubeamania

PostRe: Corporate Bonds
by Grumpy David » Wed Apr 25, 2018 3:01 pm

lex-man wrote:
Grumpy David wrote:
lex-man wrote:
Preezy wrote:Surely there are still inherent risks in buying corporate bonds in that the company you're buying bonds from might get into financial problems and not be able to pay up on maturity? I'm sure there are safeguards but that seems a risk to me.


Sure, also the company could go under but companies like Apple, Microsoft and Shell issue bonds on a semi regular basis.


This is why you don't buy bonds from individual companies or shares from individual companies.

You buy trackers for corporate bonds, government bonds and also for equities. Spreads the risk around.


I don't know the changes that a large multi national company would default on a loan seems pretty slim. That said I think I'll take your advice anyway. Sadly at the moment my money situation has changed again and I think I'm going to have to hold off on buying bonds.


Well yeah the odds that Apple or Google etc will default is pretty low but that's going to be reflected in the interest rate so you won't make much from holding that bond.

A bond index tracker might hold thousands of different corporate bonds. Some companies will default. Most will pay the money back plus interest. Chances are that you'll get a better return on the money from diversifying rather than holding onto a single low risk asset.

You don't need a lump sum to invest either. Most places let you do £50 or £100 a month direct debit.

User avatar
lex-man
Member
Joined in 2008
Contact:

PostRe: Corporate Bonds
by lex-man » Wed Apr 25, 2018 4:05 pm

Grumpy David wrote:
lex-man wrote:
Grumpy David wrote:
lex-man wrote:
Preezy wrote:Surely there are still inherent risks in buying corporate bonds in that the company you're buying bonds from might get into financial problems and not be able to pay up on maturity? I'm sure there are safeguards but that seems a risk to me.


Sure, also the company could go under but companies like Apple, Microsoft and Shell issue bonds on a semi regular basis.


This is why you don't buy bonds from individual companies or shares from individual companies.

You buy trackers for corporate bonds, government bonds and also for equities. Spreads the risk around.


I don't know the changes that a large multi national company would default on a loan seems pretty slim. That said I think I'll take your advice anyway. Sadly at the moment my money situation has changed again and I think I'm going to have to hold off on buying bonds.


Well yeah the odds that Apple or Google etc will default is pretty low but that's going to be reflected in the interest rate so you won't make much from holding that bond.

A bond index tracker might hold thousands of different corporate bonds. Some companies will default. Most will pay the money back plus interest. Chances are that you'll get a better return on the money from diversifying rather than holding onto a single low risk asset.

You don't need a lump sum to invest either. Most places let you do £50 or £100 a month direct debit.


That's my plan as soon as I can get a pay rise.


Return to “Stuff”

Who is online

Users browsing this forum: Alvin Flummux, Bunni, Gemini73, Parksey, Photek, wensleydale and 62 guests