Unite Group 6.125% 2020

Masomnia

I'm sure if you emailed their investor relations people they could tell you.

Ahead of ordinary share holders but behind everyone else would be my guess!

Wobblydeb

Glen_Clark wrote: »

I must be missing something here. If its 'unsecured' how can it be 'secured against property'
Your post is interesting, but the thing I would be most interested in would be who is ahead of me, and who is behind me, in the queue for repayment if it all goes wrong.

The bond is unsecured.

The other debt held by unite appears to be secured against property.

Here is a guide to order of payment of creditors. http://www.finance7.co.uk/creditor_order_of_priority.html

Masomnia is just about right - ahead of shareholders (both normal and preference) but behind everyone else.

chewmylegoff

roundabouthere wrote: »

Yesterday in the telegraph there was an article on these types of bonds.

Basically they only seem to get offered out to the general public once the big financial institutions have turned them down. The feelings of the author was that the risks (because you can lose all your money if the company goes under) were not offset enough by the interest rate levels offered.

Yes, the article quite amused me because 2 pages before it in the telegraph money supplement they were carrying two half page adverts for, you've guessed it, retail bonds!