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Pablo-silver or lead?

B & B Share Prices X 3

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anyone have an answer to this question?

They are perpetual subordinated bonds also called Permanent Interest Bearing Shares(PIBS). You get 13% for eternity on face value of these. In case of default, these bond holders come after senior debt, but before equity holders.

PIBS: permanent interest bearing shares

Although technically shares, PIBS are actually bonds issued by building societies. They have no redemption date, hence 'permanent' and are bought and sold via the stock market. The basic minimum investment in PIBS is £1,000 but individual issues may have a much higher minimum. Even if a building society demutualises, its PIBS do not disappear. Instead they become PSBs (perpetual subordinated bonds). PIBS and PSBs carry fixed rates, though these can vary sharply between issuers and the actual return, the yield, will be affected by the price you pay in the stock market.

But these are usually very thinly traded. Spreads are large 83-98. The yield currently is quite high 14.4% @ 90p (mid price), which given the probability of B&B going down is fair value. Also see Other PIBS

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Thanks for that WaitingToUpsize, it's nice to have a straight-talk explaination of these things.

14% is truly an outstanding rate so therefore the risk must be large on these things.

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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