Aviva 4.375% 12Sep2049: GBP11,068 Profit
On 22 Dec 2016 we had call to buy Aviva 4.375% 12Sep2049 at 97.00:
myasiaprivatebank.blogspot.sg/2016/12/aviva-4375-12sep2049-gbp.html
Today this bond is trading at 101.00.
If you have bought GBP200k of this bond on 22 Dec 2016 at 97.00 and sold it today at 101.00, your return will be:
Coupon + Capital gain + Accrued Interest = GBP12,050.
Loan interest for this 136 days at 1.30% = GBP982.
Net profit = GBP11,068.
Unstable economy and political condition in UK have presented much opportunities for GBP bonds.
Aviva is a company that is net cash; means its cash & cash equivalent is more than total debt. Hence credit is very safe.
When Mr Market pushes GBP bonds down again, we will be buying them again.
myasiaprivatebank.blogspot.sg/2016/12/aviva-4375-12sep2049-gbp.html
Today this bond is trading at 101.00.
If you have bought GBP200k of this bond on 22 Dec 2016 at 97.00 and sold it today at 101.00, your return will be:
Coupon + Capital gain + Accrued Interest = GBP12,050.
Loan interest for this 136 days at 1.30% = GBP982.
Net profit = GBP11,068.
Unstable economy and political condition in UK have presented much opportunities for GBP bonds.
Aviva is a company that is net cash; means its cash & cash equivalent is more than total debt. Hence credit is very safe.
When Mr Market pushes GBP bonds down again, we will be buying them again.
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