Severn Trent RPI-linked corporate bond

Gareth1989

The starting yield is too low to make this appealing , I'd rather just buy the Severn Trent ordinary shares themselves and enjoy the 4.2% yield that's likely to rise with inflation.

BLB53

The starting yield is too low to make this appealing

Agree. For a min. £2K investment, the return in year 1 is only £26. The return from the shares for the same amount would be £84.

Masomnia

Agree that the shares look better in terms of risk/reward though obviously the share price is going to be more volatile. In the event of administration you're much more likely to get your money back with the bonds too.