Re: Preparing a Bond Ladder (via Interactive Investor?)
Posted: January 7th, 2021, 10:18 am
Newroad wrote:As to why hold to maturity, my simplistic understanding is so that it becomes a consideration of the coupon(s) and taking capital loss (or gain) out of the equation. If one didn't do that, then why not say 3 or 7 years, rather than 5?
Newroad, my comments above were about the historical values posted by TJH.
The situation of gilts has changed now. I don't hold any and wouldn't propose that they're a good idea until there has been some adjustment in values. Personally I think cash is better in the current market environment for anyone who wants to mitigate some of the risk in their portfolios. Having gone leveraged long equities last March-June, I will in the future increasingly grow my cash allocation.
Is there anything specific you expect from gilts that you can't get from cash (without moving some way along the yield curve)?
GS