Minibonds

[MarillionFan]

A savings bond in rugby club Wasps pays 6.5%... just don't get stung | Daily Mail Online

I'm seeing more and more of these retail bonds coming up recently. Been one about solar power recently. Tesco did one last year etc and more around.

They offer high interest and your capital is at risk, but does anyone know what the actual returns have been on these over the years? How many fail, how many pay?

Anyone taken any up?

[Unix]

A savings bond in rugby club Wasps pays 6.5%... just don't get stung | Daily Mail Online

I'm seeing more and more of these retail bonds coming up recently. Been one about solar power recently. Tesco did one last year etc and more around.

They offer high interest and your capital is at risk, but does anyone know what the actual returns have been on these over the years? How many fail, how many pay?

Anyone taken any up?

The rate is far to low for such a risk, should be more like 12%, better buying Greek bonds.

[DimPrawn]

The rate is far to low for such a risk, should be more like 12%, better buying Greek bonds.

^ This

Retail clients don't seem to understand the concept of risk adjusted return.

Lots of these are going to go pop after Labour take control of the economy, losing all the investors money.

I'd rather put all my money into Greek bonds, at least the yield on those represents the risks involved.

[eek]

I'm signing up for a few k in the innis and gunn beer bond...

but its a product I happily drink so can accept the risk...

[NotAllThere]

I guess Millibonds are some kind of investment in Labour.

[TykeMerc]

I guess Millibonds are some kind of investment in Labour.

That could never end well.

[GreyWolf]

The Wasp offer isn't a mini bond in the accepted sense because it will be listed. The listing and trading on Orb carries with it a higher level of regulation that doesn't apply to mini bonds.

That's not to say it's safe, just that Orb offerings and mini bonds are two different things.

[BrilloPad]

I would have thought to be safe you would need a basket of bonds?

What exactly is the difference between a bond and a minibond?

[MarillionFan]

I would have thought to be safe you would need a basket of bonds?

What exactly is the difference between a bond and a minibond?

About 30 years.

[BrilloPad]

I would have thought to be safe you would need a basket of bonds?

What exactly is the difference between a bond and a minibond?

Retail bonds come in two main flavours – tradeable ones, like the Wasps deal, and riskier unlisted ‘mini-bonds’ bought direct from the issuing company. These latter bonds offer even higher returns but must be held to maturity.