Why do private corporate income bonds in the UK pay higher rates than public corporate income bonds?

Good question.

First, privately held companies often do not have as many options for financing as public companies do. This makes it more difficult for these companies to issue a bond as the expense is higher and the pool of buyers is smaller.

However, this can be a benefit to investors that want to earn higher rates of interest compared to public company bonds or UK government gilts.

Alamo Mortgage Holdings, Ltd a privately held United Kingdom company offers corporate income bonds that pay hundreds of basis points more than UK government gilts.

Another added advantage to Alamo Mortgage Holdings corporate income bonds is for investors that think the GBP is going to continue to weaken against the USD you can choose to be paid in USD or convert to USD.

Alamo Mortgage Holdings sells GBP denominated bonds and then purchases packages of US mortgage notes in the United States in the State of Texas. The company receives payments in US dollars when purchasing packages of mortgage notes. As a result, we can offer higher returns to Uk institutional and accredited investors.

If you would like to learn more go to www.alamomortgageholdings.co.uk/ and fill out the contact form to request some free information to schedule a Zoom or Google Meet introductory call.

I wish you good luck with your investing!

Benjamin Z Miller, Managing Director
Alamo Mortgage Holdings, Ltd.
ben.miller@alamomortgageholdings.co.uk