Update: Burford Capital bond

This 6.125pc bond, due in 2024, may not offer the capital appreciation potential of shares in Burford Capital, the £3.8bn litigation finance company, but the company’s first-half results last month suggested that the coupons were absolutely rock solid, while the yield remains attractive.

This bond, like many that trade on the London Stock Exchange, is not rated by the big agencies, but the quality of the credit does not appear to be in doubt.

First-half profits rose by more than 20pc and cash flow from operations by more than 60pc, to underpin the annual £6.12½ coupons. These payments equate to a yield to maturity of 4.4pc, adjusting for the capital loss that any buyer at £109.25 will incur on redemption in October 2024 at the par (or issue) price of £100.

That yield represents a 3.1 percentage point premium to the benchmark 10-year gilt and beats cash hands down. Interest rates are rising only slowly so the major risk remains a sudden, unexpected spike in inflation.

The bonds remain a good holding for income seekers.

Questor says: hold

Ticker: BUR2

Bond price at close: £109.25

Russ Mould is investment director at AJ Bell, the stockbroker