JohnW wrote:Is there any capital growth with bonds? They’re issued for £100 and they redeem for £100. They’re a contract to pay you back your money, and give you some interest. I told you my area is cat food.
There can be. Unless you intend to simply hold until expiry, with gilts and other bonds your capital is at risk - market demands higher rates, the value of your bond drops to reflect this.
Hence, with 1-year savings bonds now over 4%, with no risk to capital, buying (longish) gilts seems like a (contrarian?) punt on interest rates falling again in the not too distant future.
But my area is dog food. Has to be, I've a very sensitive pooch