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Pibs as part of a balance income portfolio

OBG
OBG Posts: 27 Forumite
Part of the Furniture Combo Breaker
in Savings & investments
I am considering purchasing one or two Building Society Pibs as part of a balanced income portfolio.

I realise these are considered a complex financial instrument these days and carry the associated risks, as has been demonstrated in the past with some of the problems that have occurred with some issues.

Does anyone know whether there is a ratings list of Pibs anywhere to view?

Kind regards

OBG
«1

Comments

  • talexuser
    talexuser Posts: 3,615 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Maybe buy some Manchester Building Society ones?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Why do people have to make life hard for themselves? A savings bond ladder, a gilt ladder, bond funds of all durations and types, there are so many options.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • OBG
    OBG Posts: 27 Forumite
    Part of the Furniture Combo Breaker
    So these should be avoided by the private investor?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    talexuser wrote: »
    Maybe buy some Manchester Building Society ones?

    Seriously........

    https://www.telegraph.co.uk/investing/bonds/misery-manchester-building-society-pibs-holders/

    Chasing yield comes at a potential cost.
  • talexuser
    talexuser Posts: 3,615 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thrugelmir wrote: »
    Seriously........

    No, irony ;)
  • Alexland
    Alexland Posts: 10,561 Forumite
    Eighth Anniversary 10,000 Posts Photogenic Name Dropper
    talexuser wrote: »
    No, irony ;)

    Too late the OP has just ploughed all their money in on your recommendation. I agree with Boston stick to mainstream investments which should over time generate an adequate return.

    Alex
  • talexuser
    talexuser Posts: 3,615 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Alexland wrote: »
    Too late the OP has just ploughed all their money in on your recommendation.

    :)
    If you do that from one post from a total stranger on the net, without even googling the story, you deserve the consequences.
  • OBG
    OBG Posts: 27 Forumite
    Part of the Furniture Combo Breaker
    Relax, money still in my pocket.

    I do love a bit of irony though!

    Not all Pibs have been poor investments.

    My mother has had Leeds 13.7/8% Pibs since the early 1990's bought at 120p.

    Been a nice income provider for her.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    OBG wrote: »
    Relax, money still in my pocket.

    I do love a bit of irony though!

    Not all Pibs have been poor investments.

    My mother has had Leeds 13.7/8% Pibs since the early 1990's bought at 120p.

    Been a nice income provider for her.

    Hindsight is an investors worst enemy. Easy to substantiate a particular view with specific examples. Nationwide has bought back PIBs in the past. As the cost of finance is out of kilter with current borrowing rates.
  • OBG
    OBG Posts: 27 Forumite
    Part of the Furniture Combo Breaker
    The example is not hindsight.

    But your viewpoint to be cautious has been noted.

    Thanks
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