how to buy irish gilts?

V

vesuvius

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hi
i'm just wondering how one goes about buying irish govt bonds?
my dad used to have some years ago,and from memory he said he bought them "direct from the govt!".

when i google it,i'm referred to the NTMA and from there to davys.

i was hoping they could be bought "direct" without having to pay commission to brokers.

also,what would be the min' invsmt' here?it's for someone with about 50k to invest.

regards
 
You can buy these through Davy Stockbrokers.
Commission is 0.5% plus €40 custody charge plus an annual holding fee of €7.50 per holding (plus VAT) with a minimum of €45.00+VAT ie €54.45

I have purchased €50,000 in the past so it is possible. If buying, remember to buy Benchmark bonds as the dealing spread on these is a lot less than the spread on non-benchmark bonds. They will quote you a market price.

I don't think it is easy or possible for a retial investor to purchase bonds directly when they are issued, so you have to pass by a broker.

Irsh gov't bonds are also available from broker in the UK, but do not know about minimum amoutns nor fees
 
Don't forget that the income from these is taxed at your marginal rate, so they are not really suitable for people paying 41% tax + prsi. A high interest savings account is probably better.

Brendan
 
Brendan Burgess said:
Don't forget that the income from these is taxed at your marginal rate, so they are not really suitable for people paying 41% tax + prsi. A high interest savings account is probably better.

Brendan
Click to expand...

But for those of us on the lower rate they would be a solid investment v the awful deposit rates offered by the banks!
 
Or someone who pays no tax because their income is too low.

Anyone who bought them a month ago, is now looking at a tax-free gain of 10-15%
 
NTMA - Irish Government Bonds

You can only buy Irish Government Bonds from designated brokers. The NTMA have published a list of brokers at http://www.ntma.ie/Publications/2009/WhereBuyBonds.pdf

That comparative table shows the broker fees that each charge.


The wholesale Irish Government Bonds are currently taxed at the marginal tax rate (20% or 41%), are subject to the universal social charge and may also be subject to PRSI. At the time of purchase or redemption, broker fees may apply.

If you sell your bonds before the final maturity date you may get less back than you originally paid for them.
 
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