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Energy bonds

Just how good are these new energy bonds. They appear on the surface to be a sound investment. Any advice?

Comments

  • I looked at one - concluded it was high risk in a company with low assets. If you don't understand the risks then the advice is always don't do it! Have done the Premier Oil Bond instead, which i am more comfortable with but there is still the risk of default as not FSCS covererd.
  • jimjames
    jimjames Posts: 18,416 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Mikem64 wrote: »
    Just how good are these new energy bonds. They appear on the surface to be a sound investment. Any advice?

    Can you explain exactly your reasoning for suggesting they are a sound investment? Are they sound on the surface only or have you done further digging to check?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • thenudeone
    thenudeone Posts: 4,462 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    They are a loan to the company. You are betting that the company's plans and forecast will come true. If they don't, you could lose your investment.

    The same is true of many investments, of course, but the risk is usually spread amongst many companies so that a failure in one won't be catastrophic.
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