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Bradford & Bingley nationalised and safe ? Get 67% on their bonds !

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eeja
eeja Posts: 374 Forumite
in Savings & investments
Bradford & Bingley PLC5 6.25% Perpetual Bond
Bid 2.05 14.65 offer [market price]
Running Yield 67.37% pa Yield if redeemed 81.86% pa

Comments

  • evenasus
    evenasus Posts: 11,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The banking side of Bradford & Bingley has not been nationalised.
    It's been taken over by the Spanish Santander Group.
  • paranoid-taxpayer
    paranoid-taxpayer Posts: 13 Forumite
    eeja wrote: »
    Bradford & Bingley PLC5 6.25% Perpetual Bond
    Bid 2.05 14.65 offer [market price]
    Running Yield 67.37% pa Yield if redeemed 81.86% pa

    How and where do you find out more, buy these?.......I think br and bingley is in receivership is it not?.......the deposits side was given away to santander...i think so anyway.....probably there is not an active market in the bonds......and may be a struggle if one wants to offload any holdings.....
  • eeja
    eeja Posts: 374 Forumite
    paranoid-taxpayer wrote: »
    How and where do you find out more, buy these?.......I think br and bingley is in receivership is it not?.......the deposits side was given away to santander...i think so anyway.....probably there is not an active market in the bonds......and may be a struggle if one wants to offload any holdings.....

    The info is accurate and provided by Barclays Capital which deals with Corporate clients but Barclays Wealth or any stockbroker should be able to help.
    With returns such as these there must surely be , like with the B&B PIBS. a question of whether or not Santander will honour these.
    Some one in the know ie working at B & B Head Office could make millions if they have that knowledge and it's positive.!
  • dunstonh
    dunstonh Posts: 119,675 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    B&B assets are being broken up to pay liabilities but it is unlikely there isnt going to be enough to pay all the debts. So, buying these bonds is a risk based transaction and that is why the yield is high.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gozomark
    gozomark Posts: 2,069 Forumite
    eeja wrote: »
    Some one in the know ie working at B & B Head Office could make millions if they have that knowledge and it's positive.!

    Some one in the know ie working at B & B Head Office could spend time in prison if they have that knowledge and it's positive and they act upon it...
  • eeja
    eeja Posts: 374 Forumite
    gozomark wrote: »
    Some one in the know ie working at B & B Head Office could spend time in prison if they have that knowledge and it's positive and they act upon it...

    Having and using insider information is indeed an offence .
    Having knowledge or general info isn't and indeed all investors use their knowledge to reach decisions.
    The above poster stated that B & B is insolvent (which means in bankrupcy) and that these bonds will only be paid out to the extent that there are funds available after other debts are paid .
    Most people were under the impression that the bank was acquired by Santander but it appears they took over only the assets but not the debts !
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    eeja wrote: »
    Most people were under the impression that the bank was acquired by Santander but it appears they took over only the assets but not the debts !
    Santander acquired the liabilities of Bradford & Bingley - savings balances, along with the branch network. Savers' balances are part of a bank's debts

    The government took on the assets of the organisation - it's mortgage book. As defaults on this rise, it looks unlikely that the state will recover the £5bn it paid to protect savings balances, or the FSCS the £14bn liability it now has - which will drain banks and building societies for years to come.
  • dunstonh
    dunstonh Posts: 119,675 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    which will drain banks and building societies for years to come.

    And insurance companies, IFAs, stockbrokers and every other FSA authorised firm.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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