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Strategy
My opinion in answer to a similar question by Nigel50
19 Jun 2023 11:22
Nigel50 "Is this a slightly weird situation in that higher interest rates are good for LGen but if you can get 5% risk free on savings accounts/bonds, why would you buy ? And with interest rates going to rise, presumably this will get worse for the SP/despite being better for LGen."
Time lag is the basic argument.
The higher interest rates will allow them to replace bonds that have reached redemption with bonds that pay much better interest rates.
4% instead of 1% (example only)
More importantly is the government plans to reduce the amount of bonds they have to hold and replace them with infrastructure and housing (rental income).
Far far higher returns.
Now during COVID some of the bonds they held had their credit risk increased (investment grade company bonds) resulting in a £900 million loss BUT only if they sold them or there was a default (there was none).
So the £900 million was a paper loss as LGEN don't sell bonds they keep them to redemption, at which time they get the original price £100.
Now infrastructure and REITS are bond proxys, so they too have taken a kicking but the same applies as in they are only paper losses (if held by LGEN)
All that's important is the income received matches the requirements of the pensioners.
In fact due to life expectancy NOT increasing at the rate expected LGEN is removing money most years from the annuities pot.
Alas it could be quite sometime away before there is a significant increase in income.
re: new ceo?19 jun 2023 22:20
perhaps you could red back a few pages and identify his poor behaviour. until you do that you can remain blissfully naive of the character you seem to laud."
"perhaps you could red back" excellent english...for the ******ed!
Maybemymummydoesntloveme
You are
The winner of the troll of the year award.
You have been a member for 6 months and trolled across numerous threads.
You have added nothing whatsoever to this thread other than abuse of the posters.
You are and will all waysbbe a coward.
All trolls are.
"RE: This back and forth bickeringToday 16:01
What poor English. Explain what you are trying to say."
You typed it an hour and half ago?
Do you really think people won't notice?
Sad you are so sad☹️
Maybeonedaysoon mummywillsayshelovesme
"What poor English. Explain what you are trying to say."
"Yours is a good post"
I am copying and pasting your words. So your bad English, not mine.... you didn't even notice that?🤣🤣
"SD needs people to get with her narrative. Yours is a good post."
More meaningless drivel.
Whose is a good post?
Stop typing before you think. You need to form cogent thoughts and then type them òut on the thread.
Nicknaim agreed with post below BUT some of us have asked you to back up your claim
"Notice the heavy share price manipulation"
You have not done so.
Nobody is ganging up you, it's a reasonable question.
There is insufficient information on there site for a professional investor to understand what they do.
How do they pay all dividends as streamed interest?
Hence I didn't invest.
Pedrobull
Alas they very cheekily miss out 3i.
The winner by far specially over 10 years.
But 3i are on a premium so obviously upto you where to invest.
"Perhaps you could red back a few pages and identify his poor behaviour. Until you do that you can remain blissfully naive of the character you seem to laud."
"Red back"
Have you thought of reading back before you press post?