The Masked Tulip Posted March 14, 2008 Share Posted March 14, 2008 Just having a scan online in the last 10 minutes and, interestingly, several banks have put up or brought out 6 and 12 month bonds in the last few days with increased IRs. Last week the IRs on bonds was falling with several banks withdrawing higher IRs and replacing them with much lower IRs - presumably in anticipation of BOE IR cuts - but now IRs on bonds seems to be going up again and quite suddenly. Is this a result of the cash crisis re the likes of Carlye, Bear Sterns and the others? Are the banks getting desperate for cash? http://www.moneyfacts.co.uk/savings/bestbu...rate-bonds.aspx Quote Link to comment Share on other sites More sharing options...
Fortune Posted March 14, 2008 Share Posted March 14, 2008 Good find, TMT. Quote Link to comment Share on other sites More sharing options...
M21er Posted March 14, 2008 Share Posted March 14, 2008 Just having a scan online in the last 10 minutes and, interestingly, several banks have put up or brought out 6 and 12 month bonds in the last few days with increased IRs.Last week the IRs on bonds was falling with several banks withdrawing higher IRs and replacing them with much lower IRs - presumably in anticipation of BOE IR cuts - but now IRs on bonds seems to be going up again and quite suddenly. Is this a result of the cash crisis re the likes of Carlye, Bear Sterns and the others? Are the banks getting desperate for cash? http://www.moneyfacts.co.uk/savings/bestbu...rate-bonds.aspx Hi According to MoneyFacts, this 12 month fix is available: Nottingham BS Fixed Rate Savings Issue 42 6.80% 6.80% 01.04.09 £1,000 Let's hope Nottingham BS hasn't lent too much money on all those Nottingham new builds that have halved in value when sold at recent auctions. They could be looking at some hefty bad debt provisions if they have. Could easily be £50k + per loan. M21er Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted March 14, 2008 Share Posted March 14, 2008 Eeek! Co-op in at number 3. My other half has her cash in there, I'll tell her to shift it. This is not the time to be shopping for high rates IMO. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted March 14, 2008 Share Posted March 14, 2008 Eeek! Co-op in at number 3. My other half has her cash in there, I'll tell her to shift it.This is not the time to be shopping for high rates IMO. We bank with them. They were pretty high around Aug/Sept as well, 6.35 I think. But this is higher. Ooo-err. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 Is this an indicator that saving IRs are now about to rise so short of cash the banks are? Perhaps it is cheaper for them to get savings in and give out a better IR than to get the money from the central banks? Or perhaps the events of the last few days has made many of the smaller banks realise that there are an awful lot of bigger fish in trouble and that normality is not about to return any time soon? I could be wrong but I think the Co-op, being a mutual, is not that exposed to all this mess. Hard to tell of course. Their general saving rates have been pretty poor if I recall. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted March 14, 2008 Share Posted March 14, 2008 Yes I guess we just have to wait till june (3 months), for the next set of bonds with a high ir.... Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 What's happening in June? Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted March 14, 2008 Share Posted March 14, 2008 Had one building society call this week asking if I was pleased with their service. It is a savings A/C for Pete's sake. Mentioned that the money would probably stay in there if their rates stayed competitive but would be moving if they were not or if the BOE decided to do a hatchet job on Sterling - next rate move down being the clincher. I think they got the message. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted March 14, 2008 Share Posted March 14, 2008 What's happening in June? It's 3 months from now. Complete the pattern: September - December - March - I think it's cos that's when the loans have to be rolled over and can't be (or something). This is not the time to be shopping for high rates IMO. Certainly not if you have to tie your money up for a year. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 Certainly not if you have to tie your money up for a year. Meaning you think IRs will go up in that time? Or do you think banks will go bust and you won't be able to get your dosh out? Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 14, 2008 Share Posted March 14, 2008 Just having a scan online in the last 10 minutes and, interestingly, several banks have put up or brought out 6 and 12 month bonds in the last few days with increased IRs.Last week the IRs on bonds was falling with several banks withdrawing higher IRs and replacing them with much lower IRs - presumably in anticipation of BOE IR cuts - but now IRs on bonds seems to be going up again and quite suddenly. Is this a result of the cash crisis re the likes of Carlye, Bear Sterns and the others? Are the banks getting desperate for cash? http://www.moneyfacts.co.uk/savings/bestbu...rate-bonds.aspx Well, it looks like the futures markets aren't expecting any cuts any time soon. LIFFE Three month sterling closed today with June 2008 interest rates at 5.60%. LIFFE closed @ 94.40 June 2008. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 Hmmm, are those 3 months figures something that can chop and change a lot between then and now? Something appears to be happening - last week they were all reducing their bond rates and now they have gone up. Something is up. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted March 14, 2008 Share Posted March 14, 2008 Meaning you think IRs will go up in that time?Or do you think banks will go bust and you won't be able to get your dosh out? Well I was thinking the latter. I don't have any knowledge about whether banks will go under. In fact, i remember in the early 80s that the company I worked for issued a 5 year bond with t a really good rate. I asked how come it wass so good and my manager said that they did it from time to time just to get a bit more cash on the books. Co-op may just want to attract a bit of extra cash, but obviously now is not the time to be thinking that. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 (edited) Well I was thinking the latter. I don't have any knowledge about whether banks will go under. In fact, i remember in the early 80s that the company I worked for issued a 5 year bond with t a really good rate. I asked how come it wass so good and my manager said that they did it from time to time just to get a bit more cash on the books. Co-op may just want to attract a bit of extra cash, but obviously now is not the time to be thinking that. I hear what you are saying. I have a 6 month bond with Northern Crock but it is that recent one that allows instant access so not really a bond. At the present time I think instant access is preferable to higher IRs or to fixed higher IRs. If Bear Sterns is so badly affected then surely there are a lot more banks in similar positions. Edited March 14, 2008 by The Masked Tulip Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 14, 2008 Share Posted March 14, 2008 last week they were all reducing their bond rates and now they have gone up. Something is up. The price of oil mainly, inflation is about to soar to the extent where bullsh*t will no longer work. Interest rates are going the same way as OZ up,up,up, 6.5% at least in 2009. Big pay rises to come or people will be better of sitting at home all day scratching their ****. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 Would be nice to have them up in 2008 though Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 14, 2008 Author Share Posted March 14, 2008 (edited) Wrong thread Edited March 14, 2008 by The Masked Tulip Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 14, 2008 Share Posted March 14, 2008 Would be nice to have them up in 2008 though I think they will start to rise August- September, people were happy to suffer pi*s poor pay rises when their house prices were rising £20-30,000 a year and they could get a remortgage when paying the paper boy on a sunday morning, thats all gone now and the only option left are big pay rises just to survive, which will lead the BoE to raise interest rates. Higher rents = higher wage inflation = higher interest rates. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted March 14, 2008 Share Posted March 14, 2008 I hear what you are saying. I have a 6 month bond with Northern Crock but it is that recent one that allows instant access so not really a bond.At the present time I think instant access is preferable to higher IRs or to fixed higher IRs. If Bear Sterns is so badly affected then surely there are a lot more banks in similar positions. After a lot of soul searching, we were going to put some money in that one and then wnet into the nearest branch (Kingston, where most of the news footage was shot in September) only to find out that they had dropped the rate from 6.35% to 6. So we walked away. It was extremely empty as well, no sign of a single customer. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 15, 2008 Author Share Posted March 15, 2008 Well, looking at the moneyfacts table there are better deals out there as of the last 48 hours so at least you have that option now if you wish to fix. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted March 15, 2008 Share Posted March 15, 2008 (edited) Meaning you think IRs will go up in that time?Or do you think banks will go bust and you won't be able to get your dosh out? There always seems to be problems, either a bank goes bust or the economic gloom worsens as money gets more expensive, its like clockwork ;p I guess eventually banks will figure it out and try and borrow more money in the trough and things will level out? Edited March 15, 2008 by moosetea Quote Link to comment Share on other sites More sharing options...
Little Professor Posted March 16, 2008 Share Posted March 16, 2008 Typical, I've just sunk £10,000 in Kaupthing Edge (6.86% 1-year fixed) That's my student loan, but I'm still making a loss (getting charged 4.8% (RPI-linked)on the loan, only getting 4.11% return on the bond after higher rate tax) Quote Link to comment Share on other sites More sharing options...
_w_ Posted March 16, 2008 Share Posted March 16, 2008 Hmmm, are those 3 months figures something that can chop and change a lot between then and now? Something appears to be happening - last week they were all reducing their bond rates and now they have gone up. Something is up. Did you see the headline on the HPC homepage, HBOS borrowing 750m at 9.5%? Something IS up. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 16, 2008 Author Share Posted March 16, 2008 Did you see the headline on the HPC homepage, HBOS borrowing 750m at 9.5%? Something IS up. This is what is so lousey at the moment - the banks are desperate for cash and are borrowing it but because other banks do not trust them they have to pay a premium for it. How can HBOS get away with paying 9.5% for their money yet they dropped their web saver IR to below 5% this week apparently? A bit worrying that HBOS needs a 750 million loan at the moment though. Personally, I cannot make head or tails out of whether IRs are going to to go up or go down during the rest of this year. I think there might be one more IR drop but whether that it will stop inflationary concerns and subsequent IR rises later in the year is just the 64,000 buck question at the moment. Quote Link to comment Share on other sites More sharing options...
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