Brokers supporting online corporate bond purchases

[88V8]

They have at times also allowed me to purchase bonds without having sufficient cash in my account. ...very unusual these days for a retail broker.

I have been lucky in this respect, starting with Natwest stockbrokers, then TD, then ii, that I do not need any cash in the account to make a T2 purchase. The only limitation is the daily rate at which we can transfer from our bank a/c, which is quite low. Could be increased if we migrated to a dearer a/c but that is another story.

Were it not for that I could spend c£300k without having a sou.

V8

[hind]

Try iDealing.com

I second this. Had account for many years. Direct market access & good phone service also.

I third this, good dma & phone service. Only one niggle is they just put thier withdrawl fees to £25 for up to £50k

[formoverfunction]

UK May Reap £70 Billion Borrowing From Household Covid Savings

Treasury wants to broaden pool of government bond buyers

Households hold £1.7 trillion that could help fund UK debt

https://www.bloomberg.com/news/articles ... id-savings

Suggest NS&I will attempt to raise £35 billion next year, but it doesn't state it will be through gilt issues, but sort of suggests it. There was a time when NS&I did sell gilts, the Blackpool list, so who knows.

It might be time to start hoping they start selling index linked saving bonds again..but then again, may be not. Maybe one day the UK will achieve Italian levels of retail sovereign debt participation. Splendido indeed!

[Alaric]

It might be time to start hoping they start selling index linked saving bonds again..but then again, may be not.

I would think a product that would sell well would be an indexed bond that gave a positive real rate of return, not vulnerable to market fluctuations. In other words an account which revalued the capital in line with CPI or RPI and paid a small amount of interest, also revalued. If they can borrow at negative real rates, perhaps such a product would be regarded as too expensive a way of financing government debt. It would on the other hand give protection from inflation to savings as well as protection from market movements.

[bruncher]

Try iDealing.com

I second this. Had account for many years. Direct market access & good phone service also.

I third this, good dma & phone service. Only one niggle is they just put thier withdrawl fees to £25 for up to £50k

I had a look at this today. It appears that withdrawal by CHAPS is charged at £25, but BACS Faster Payment is £3.85. Curiously the Faster Payment option is not listed next to CHAPS and cheque charges.

[Surerera]

"I would think a product that would sell well would be an indexed bond that gave a positive real rate of return, not vulnerable to market fluctuations. In other words an account which revalued the capital in line with CPI or RPI and paid a small amount of interest, also revalued. If they can borrow at negative real rates, perhaps such a product would be regarded as too expensive a way of financing government debt. It would on the other hand give protection from inflation to savings as well as protection from market movements."

Back in the day (90's I think) NS inflation linked bonds paid 1% or 1.5% over RPI. I bought quite a few and have kept rolling them over when they mature. Of curse the new version only pay about .01% over CPI but I'm glad I kept them for all these years. You can certainly sleep well and this year I'm getting about 10%

[GeoffF100]

I suspect - but willing to be proved wrong - that when you use your phone to talk to your "low-price broker" they undertake the same job you could have done yourself online (and you pay more for someone else to do it).

With iWeb, I have always spoken spoken directly to a dealer (that is not bad for a fiver). On one occasion, the dealer said it was big trade and price was not good and phoned another market maker. That did not happen with my most recent trade. That price was OK, but not great.

With AJ Bell, I placed an order with customer services, and that order was passed on to a dealer. AJB's prices did not seem to be worse than iWeb's.

I expect that there is a certain amount of luck of the draw.

[GeoffF100]

If they can borrow at negative real rates, perhaps such a product would be regarded as too expensive a way of financing government debt. It would on the other hand give protection from inflation to savings as well as protection from market movements.

Currently, they cannot for most issues on most days. Real redemption yields are fluctuating around zero. The shorter dated issues are up rated by RPI. NS&I could profitably issue CPI Index Linked National Savings Certificates. Whether they are gobbling up depends on the terms, and the prices of Index Linked Gilts at the time. NS&I does not seem to be generous at the present time though.

[formoverfunction]

"I would think a product that would sell well would be an indexed bond that gave a positive real rate of return, not vulnerable to market fluctuations. In other words an account which revalued the capital in line with CPI or RPI and paid a small amount of interest, also revalued. If they can borrow at negative real rates, perhaps such a product would be regarded as too expensive a way of financing government debt. It would on the other hand give protection from inflation to savings as well as protection from market movements."

Back in the day (90's I think) NS inflation linked bonds paid 1% or 1.5% over RPI. I bought quite a few and have kept rolling them over when they mature. Of curse the new version only pay about .01% over CPI but I'm glad I kept them for all these years. You can certainly sleep well and this year I'm getting about 10%

- I have around 8% of my investment portfolio in those. When they were on sale I combined buying them with an equity savings plan, 3 really, the 3 largest global IT's as I focused on paying my mortgage off. Like you I keep rolling them over. I still own the IT's and that first house has now been rented out for almost 25 years.
I was a dull 20 year old, all work and saving. LOL, but I did manage to quit full time work in my very early 40's....and I've had more than a little bit of fun along the way