Get a 6.5% return Eros launches retail bond

kingrulzuk

http://www.thisismoney.co.uk/money/investing/article-2769546/Bollywood-film-maker-Eros-launches-retail-bond-paying-6-5-return.html


Did anyone read this?

bowlhead99

Not before you pointed it out, as I'm not a Daily Mail reader

All kinds of companies issue bonds to raise money. I'd draw your attention to the comment under the big glamorous Bollywood photo:

But cautious savers should tread with care, because if you buy company debt via bonds like this the money you make back depends on the firm not going bust. That makes this an investment only for those willing to take a risk and do their research on Ero's's financial strength.

Unlike with a savings account you are not protected by the UK's Financial Services Compensation Scheme that guards against losses of up to £85,000.

So, if you're willing to take a risk and do your research on Eros's financial strength, there are some returns to be made. Same goes for buying shares and bonds with thousands of other companies. I haven't seen anything to indicate that this particular film company has better prospects than all the other companies out there across all the industries out there.

You don't get a share of their profits, you just get a fixed return as long as they have enough money to pay you. It's not a super safe high credit rating loan, otherwise they wouldn't be paying over 6% on it.