Prudential GBP Bond: GBP11,012 Profit

On 30 Oct 2016 we had call to buy Prudential 5% 20 July 2055 at 99.00:
Link: myasiaprivatebank.blogspot.sg/2016/10/gbp-bond-idea.html

Price of the bond is at 102.75 today.



If you have bought GBP200k of this bond on 30 Oct 16 at 99.00 and sold it today at 102.75, your return will be:

Gross income: GBP5,000 (coupon) + GBP8,071 (capital gain + accrued interest) = GBP13,071.

You will have drawn a full loan for this trade if you dont have GBP, that will cost you loan interest of GBP2,059.

So net profit to you will be GBP13,071 - GBP2,059 = GBP11,012.

Capital outlay is zero, because investor draws full GBP loan for the trade.

Requirement to open a private bank account is SGD2mil. If you are looking for a private banker, send me a message using the "Contact Form" on the right, I can recommend my friends to you.

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