Coop Development bonds - are they a good bet?

bigadaj

For a not dissimilar level of risk then you could look at p2p lending, and you can get 10-14% on that with security generally in the form of property.

It is more hassle than bonds or bank accounts as you need to spread risk by investing across a number of loans and a number of platforms, but it's a significant premium.

Low interest single comoany corporate bonds don't really make any sense.

Malthusian

AndyT678 wrote: »

When there are plenty of companies out there with better dividend yields than this which also have the chance of capital gain or FSCS protected bank accounts paying more what flavour of idiot do you have to be to think this is a good offer?

Well, this thread is a good example. Oh, it's the lovely old Co-op, my Gran used to shop there, they're ethical unlike nasty Tesco, they wouldn't let me invest in this if there was a risk I'd lose the money.

Ironically the low rate probably helps to attract buyers as it makes it seem like a deposit account. If they offered, say, 8%, people might be more likely to ask questions about the risk.

bigadaj

I'd like to see a survey of those who might be investing, I'd expect less than half to realise that their capital was actually at risk despite the disclaimers and notification within the literature.

Plus

Just to add that there is no 'the' Coop, there are number of Cooperative societies which have varying relationships with each other (the details of which I don't fully understand). Just because you may think positively towards the Bank or Funerals gave grandma a nice headstone, doesn't have any bearing on whether this bit is worth investing in. Just like it's not a good idea to invest in Morrison's because Jim made a good LP.