Retail Bond Expert

Retail Bond Expert’s Mr Bond considers whether there’s a ‘third way’ in the ongoing quest for income

As mini-bonds issuer Providence Financial goes bust taking £10m of income seekers hard-earned with it, Retail Bond Expert’s Mr Bond explains the importance of its listing venue when considering a bond as an investment.

‘Too good to be true’ Providence Financial bonds prove to be just that

As part of its ongoing campaign to see investors better educated, RBE’s Mr Bond lifts the lid on some of the markets worst excesses - 'don’t take shareholder risks for bondholder rewards'

As a champion of the market RBE has become increasingly concerned by a number of recent issues and the risks they present to investors.

The low interest rate environment of recent years has made the hunt for yield more difficult and as I highlighted in the last edition of DIY Investor Magazine, demand from investors for retail bonds has outstripped supply leaving investors frustrated by the shortage of issuance.

Solar power is becoming increasingly prominent in India and the sector is generating considerable interest among investors with over $4.5 billion of new investments announced in the last twelve months.

In this exclusive interview Mr Bond tries Wasps’ Chief Exec David Armstrong with some searching questions – and appears to have been converted.

In February, peer-to-peer lender Wellesley unveiled the first ever ISA compliant retail bond that invests in loans on its platform; it delivers 4%, tax free for a three year investment and 5.25% for five.

"World can run without money and currencies but not without business and trade.” Amit Kalantri

Retail Bond Expert takes a look at the considerations

A look at the past 12 months in the AIM and Bond markets

Following the launch of its first retail bond in the UK Retail Bond Expert is delighted to have had the opportunity to speak to FD Tony Durrant who, in this unique interview, tells us more about the strategy that underpins £1.8 billion FTSE 250 oil exploration company Premier Oil and shares his thoughts about the Order Book for Retail Bonds (ORB).

Retail Bond Expert confirms the need for caution as borrowers tempt investors with a whole range of both listed and unlisted bonds, and asks if it is time for industry standard product definitions.

With Thursday’s half-yearly figures expected to show the full extent of the problems at the troubled Co-operative Bank, bond holders have united in their opposition to proposed plans to exchange their debt for equity, and have taken their case to the Bank of England – and beyond!

‘Fork ‘andles’ – Mr Bond Says Make Sure You Know What you are Buying

As the Governor of the Bank of England delivers his most significant policy statement since taking office, Mr Bond considers the likely impact of a protracted period of low interest rates.

Mr Bond considers the recent exodus from bond funds

Following its campaign to ensure that investors are provided with sufficient information to allow them to make informed investment decisions and objectively weigh the merits of the retail bonds on offer, Retail Bond Expert (RBE).

Painfully low interest rates attract savers and investors to higher rates of return

knowing the difference between retail bonds, mini-bonds and private placings

Elise Huttenga of IDCM discusses the appeal and growth of the retail bond market

Eden Riche of Investec outlines the risks and opportunities ahead

Phillip Gilbert of Linear Investments poses the question

With only six weeks left to make use of the 2012-2013 ISA allowance, savers and investors are increasingly considering retail bonds as a way to achieve above-inflation returns.

This has been the most prolific year to date for the retail bond market since the launch of ORB in 2010.

Only 30% of savers operate savings accounts that beat the current rate of inflation, according to a survey of over 2,000 people commissioned by lend-to-save firm RateSetter, which concluded that the vast majority of savers get negative returns from their savings accounts.

The rapidly developing UK retail corporate bond market is attracting a more diverse range of issuers and this has raised concerns that some investors may not fully understand the potential losses they could be exposed to.

Bond funds undoubtedly have some advantages, the strongest of which is the ready-made diversification of a pooled investment. By utilising a fund, the diversification benefits of a hundred or more individual bond holdings can be had at the click of a mouse, with the attendant reduction in transaction costs in comparison to individual bond purchases. However, bond funds could be argued to be less attractive than holding bonds directly for two reasons.

The Financial Services Authority (FSA), the City regulator, is introducing a package of important reforms at the end of this year which will affect everyone saving for a pension or investing in an ISA.

As of August 2012, instant access accounts offered just 0.22% interest and deposit accounts 1.51%. Meanwhile cash ISAs offered an average of just 0.66% while fixed-term savings bonds paid more, but only 2.49% a year.