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Cauta Capital Ltd Bonds

Gilts, bonds, and interest-bearing shares
bonrepos
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Cauta Capital Ltd Bonds

#118340

Postby bonrepos » February 15th, 2018, 10:57 am

My son in law is thinking of investing in Cauta Capital 10 year bond issue paying 9% annually.

He has asked me what I think. I know very little about bonds but 9% does sound too good to be true.

Has anybody any experience of dealing with Cauta Capital?

Many thanks.

Alaric
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Re: Cauta Capital Ltd Bonds

#118344

Postby Alaric » February 15th, 2018, 11:19 am

bonrepos wrote:I know very little about bonds but 9% does sound too good to be true.


A brief look at their website suggest that 9% is only available for investments of £ 75,000 or more.

9% is on offer because of the risks. There are two mainly, the one that's there all the time is that there's no market. If the investor wants or needs to sell the bond, it's not going to be possible. In other words it's a lock in possibly to the end of the term. The other is default. They find they cannot pay the 9% interest, or even worse, default on the capital entirely.

It's something that to my mind would be suitable only for sophisticated investors and those of high net worth and some sort of disclosure of that might have been expected on the website. Indeed the website makes no mention of the FCA or investor protection. To be fair you have to ask specifically for detailed information.

There are a number of other high risk, low liquidity bonds out there.

GoSeigen
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Re: Cauta Capital Ltd Bonds

#118362

Postby GoSeigen » February 15th, 2018, 12:53 pm

bonrepos wrote:My son in law is thinking of investing in Cauta Capital 10 year bond issue paying 9% annually.

He has asked me what I think. I know very little about bonds but 9% does sound too good to be true.

Has anybody any experience of dealing with Cauta Capital?

Many thanks.


In short, the company Cauta Capital Limited, its creditor and its firm of accountants are all related companies, set up in the last 2-4 years and controlled by a small group of directors. I wouldn't buy these myself.

Here's the creditor/"trustee", Jade State Wealth Ltd:

https://beta.companieshouse.gov.uk/comp ... 5/officers


Please click on the director Graham Andrew ARNOTT and note that he is also director of Cauta Capital's accountants, Accounting Worx

GS

bonrepos
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Re: Cauta Capital Ltd Bonds

#118429

Postby bonrepos » February 15th, 2018, 5:17 pm

Alaric and GoSeigen

I am very grateful for your advice and expertise.

You have reinforced my own sentiments regarding this and I have already passed
on your messages to my son in law.

Another plus for Lemon Fool.


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