Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
However why is GCP trading at such a large premium to Sonia compared with some other bond proxy type stocks which are around 2 to 3% over Sonia? GCP seems out of line with other bond proxies, so others may fall in price or GCP May rise in price to make yields comparable?
Possibly because no news re the impact of the wildfires on i3, could be no impact, minor or major impact. I expected an announcement either way but no announcement leaves people guessing. Ready to buy more on news of any short term impact.
The price is the marginal trade, ie the last price and volume that participants are willing to trade, and nothing to do with the number of shares bought or sold shown on lse.
The best way of understanding price is - 1. Subscribe to level 2 data and sit and watch the order book all day, - 2. Get a broker that allows you to trade on the order book and practice buying on the bid and selling on the offer. Then it will become clear!
Monkeyjack, my payment from IG is 3.006p, exact figure depends on exchange rate, but looks like your payment is net of the full 30% withholding tax. Have you completed and submitted W8BEN to Halifax to pay reduced rate 15% withholding tax? Simple online submission of W8BEN at IG but different brokers might have different procedures?
My understanding that US banks not required to “mark to market” where they designate bonds as “hold to maturity”, so SVBs issue was not about long term solvency but about short term liquidity arising from lack of confidence, hence they had to liquidate bonds to meet cash demands and incur the losses on sale of bonds at current lower market value.
Also my understanding that European/ uk banks are required to mark to market as interest rates and bond prices change.
Lack of confidence in UBS is for different reasons but has the same impact on short term liquidity.
That’s the problem that the trend is down, so I’ve sold about half my holding this morning, despite my longer term confidence in the company. In the short term I don’t see the catalyst for any upward move in share price. It is quite difficult to sell even at these prices, quotes for larger amounts were below bid, and difficult to get quotes for smaller amounts.
Yes the income here is recession proof , but the issue is what margin over the risk free rate or bond yields is necessary to compensate holding risk assets? I’ve sold all my bond proxies for now but looking at buying back when the yield is 6-7%, or when interest rate expectations start falling.
LGEN is the LDI fund manager that has issued the emergency cash calls for additional margin to pension schemes, so whilst LGEN is implicated, it is the pension schemes not LGEN that have had to sell gilts to meet margin calls. As reported in The Times and Professional Pensions on 28 Sept.