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Introducing the LemonFools Personal Finance Calculators

Be careful out there

Gilts, bonds, and interest-bearing shares
dspp
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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
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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
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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
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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.


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