Remove ads

Introducing the LemonFools Personal Finance Calculators

Be careful out there

Gilts, bonds, and interest-bearing shares
dspp
Lemon Quarter
Posts: 3503
Joined: November 4th, 2016, 10:53 am
Has thanked: 2537 times
Been thanked: 829 times

Be careful out there

#198255

Postby dspp » February 1st, 2019, 7:29 pm

"Investors who put savings totalling £236 million into bust high-risk bond firm London Capital & Finance today told of their fears for their cash.

Directors of the controversial business called in administrators this week, leaving 14,000 people worried about their savings and, in some cases, the pensions they had handed over to the firm. "


Etc on evening standard

[https://www.standard.co.uk/business/angry-investors-attack-collapsed-highrisk-bond-company-london-capital-finance-a4055421.html ] (thanks hrp)

hiriskpaul
Lemon Quarter
Posts: 1338
Joined: November 4th, 2016, 1:04 pm
Has thanked: 35 times
Been thanked: 318 times

Re: Be careful out there

#198281

Postby hiriskpaul » February 1st, 2019, 9:37 pm

https://www.standard.co.uk/business/ang ... 55421.html

"Mini-bonds" again, which as far as I am concerned are not really bonds. Never been tempted by any mini-bond I have looked at. Risk always way too high for projected return, especially so when lack of liquidity is factored in.

Alaric
Lemon Quarter
Posts: 3141
Joined: November 5th, 2016, 9:05 am
Has thanked: 9 times
Been thanked: 638 times

Re: Be careful out there

#198298

Postby Alaric » February 1st, 2019, 11:41 pm

hiriskpaul wrote: Risk always way too high for projected return, especially so when lack of liquidity is factored in.


They are supposed only to be marketed to high net worth and/or experienced investors.

Like SIPPs which allow "exotic" investments, they seem to fall through the cracks in investor protection, particularly when they are included on comparison sites alongside conventional deposit accounts.

EssDeeAitch
Lemon Slice
Posts: 457
Joined: August 31st, 2018, 9:08 pm
Has thanked: 93 times
Been thanked: 109 times

Re: Be careful out there

#198310

Postby EssDeeAitch » February 2nd, 2019, 5:04 am

Alaric wrote:
hiriskpaul wrote: Risk always way too high for projected return, especially so when lack of liquidity is factored in.


They are supposed only to be marketed to high net worth and/or experienced investors.

Like SIPPs which allow "exotic" investments, they seem to fall through the cracks in investor protection, particularly when they are included on comparison sites alongside conventional deposit accounts.


I only started self investing 6 months ago and I had a number of discussions with them and they were not interested in my financial standing, only in my money (I suspect high commission structures for the salespeople (oops, advisors)).

Applying the addage, "If it sems too good..." I decided against. But it is easy to see why so many speculated.

PinkDalek
Lemon Quarter
Posts: 3981
Joined: November 4th, 2016, 1:12 pm
Has thanked: 917 times
Been thanked: 1029 times

Re: Be careful out there

#206610

Postby PinkDalek » March 9th, 2019, 10:25 am

From the Evening Standard 1 February 2019
dspp wrote:"Investors who put savings totalling £236 million into bust high-risk bond firm London Capital & Finance today told of their fears for their cash.

Directors of the controversial business called in administrators this week, leaving 14,000 people worried about their savings and, in some cases, the pensions they had handed over to the firm. "


Now see viewtopic.php?f=11&t=16667 over at Bank Accounts Savings & ISAs.

Gan020
Posts: 49
Joined: March 3rd, 2019, 12:25 pm
Has thanked: 16 times
Been thanked: 22 times

Re: Be careful out there

#217303

Postby Gan020 » April 25th, 2019, 5:01 pm

Basset & Gold. Bonds paying 8.15% for years = 50+% compounded over 5 years.

I'm not sure what the rules over links are but Bond Review have a decent article.

£30m raised. Net assets £234k. All loans go to one company and then what they do with them is opaque.


I met this company at a conference and for about an hour I was tempted by their 30 day notice account giving around 3.25% from memory, because well I could see the risk, didn't want to risk a 3 or 5 year bond and in my head I could see the problems coming and get my money out before the meltdown. I'm glad to say the "too good to be true" mantra did kick in and I have not invested despite their telephone calls and the emails I get every other week or so. What I have been watching is their interest rates which having slowly been going up and up.

I see this whole mini-bond sector unravelling badly. Like cascading dominoes.

Be careful out there!

Gan020
Posts: 49
Joined: March 3rd, 2019, 12:25 pm
Has thanked: 16 times
Been thanked: 22 times

Re: Be careful out there

#218166

Postby Gan020 » April 29th, 2019, 2:15 pm

And here's another questionable minibond ISA

https://fluidisa.com/

It seems the FCA are getting their teeth into risk warnings (with a little push from Mark Taber?) I'm sure they have changed in the last few weeks and are now more transparent and make it clear your investment is at risk

PinkDalek
Lemon Quarter
Posts: 3981
Joined: November 4th, 2016, 1:12 pm
Has thanked: 917 times
Been thanked: 1029 times

Re: Be careful out there

#218195

Postby PinkDalek » April 29th, 2019, 4:48 pm

Gan020 wrote:...


Tony Hetherington's article here https://www.thisismoney.co.uk/money/exp ... cheme.html is entitled:

Regulator must see the light on 'solar' scheme that promises to pay up to 8% interest

It concerns a Whitehorse Solaris Bond and a Prime Guard Limited.

I'll leave it to readers to study as needs be.


Return to “Gilts and Bonds”

Who is online

Users browsing this forum: No registered users and 2 guests