What is going on with inflation in the UK? It seems sterling loses value. Can it get much worse?

2 years ago
44

Good question.

The inflation is quite high now in the UK. For example, the Financial Times did an analysis that reported a bowl of tomato(e) pasta had increased by a staggering 60 percent since last month.
The price of cooking oil was up 65% also.

Russia’s invasion of Ukraine has also exacerbated the already high inflation by pushing up the costs of gas, wheat and oil.

Many FTSE-listed companies are in a position where they now must issue profit warnings since the costs of doing business have risen so much.

The higher energy costs as a result of Russia’s invasion of Ukraine coupled with higher interest rates are what are causing these profit warnings. There will be more profit warnings coming in the near future.

Since interest rate increases cause bond prices to decrease this explains why there was a slight improvement for Gilts and sterling on Monday of last week.

However, fundamentally, if looked at over decades not the time horizon of a few weeks or months there is nothing yet that is going to reverse the trend of sterling losing value against the dollar. Many smart investors are trying to reduce their exposure to sterling and want to trade for dollars.

If you are in the situation where you have £ and normally would want to purchase gilts but are looking at all of this inflation and the £ endlessly losing value against the $, then Alamo Mortgage Holdings, Ltd has a solution for you.

The answer is that Alamo Mortgage Holdings bonds in addition to paying hundreds of basis points more than UK gilts also give institutional and accredited investors the option of converting out of GBP to USD.

Alamo Mortgage Holdings, Ltd works with institutional and accredited UK investors looking to find the fastest way out of gilts into something that pays income and also gets them into US dollars.

The US dollar has for decades been gaining value against the British pound sterling. Many family offices in the United Kingdom are looking for investments that let them reduce the concentration of their investments denominated in sterling.

If a family office in the United Kingdom purchases Alamo Mortgage Holdings, Ltd backed bonds the benefits are passive income and being able to get out of sterling quickly before it potentially loses more value.

Our focus at Alamo is to work with family offices, institutional and UK accredited investors that would like to get into an asset that pays out US dollars. USA mortgage notes are an excellent investment choice.

There are many reasons that mortgage note investing is excellent since it allows someone to purchase immediate income. The only downside to mortgage note investing is there is a bit of a learning curve to do it properly.

By purchasing Alamo Mortgage Holdings, Ltd bonds an investor is able to obtain the passive income they are seeking. However, they also avoid having to do front line negotiation to find deals and go through the time consuming and rigorous due diligence that Alamo Mortgage Holdings performs on our acquisitions.

If you are an institutional or UK accredited investor thinking of reducing your gilt holdings but want to replace it with something with more potential upside, Alamo Mortgage Holdings, Ltd has a solution for you.

Alamo Mortgage Holdings, Ltd a privately held United Kingdom company, offers corporate income bonds that offer higher rates of return than UK gilts.

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
www.alamomortgageholdings.co.uk/team.html

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