Invest in Our Sustainable Future - Thames Water Utilities & Morgan Stanley Bond

eskbanker

Eyeful said:

eskbanker

But your post is positing that something offering more than twice the FTSE 100 yield is inherently suspicious because of that rate, whereas the point is that the rate is available from low(ish) risk genuine investments and it's other factors that ring the alarm bells, such as fake promises of FSCS cover, unsolicited contact, cloned URLs/email addresses, etc

Please state the genuine lowish risk investments that are now paying a yield of twice the FTSE 100.

@jimjames highlighted the genuine TW corporate bond that this clone is pretending to be, in the nested quotes that you've removed....

Bigwheels1111

Thames water is being flushed down the toilet at the moment.
All over the news.
Let alone a rate that high. Alarm bells ringing in my head.

Malthusian

Eyeful said:

Please state the genuine lowish risk investments that are now paying a yield of twice the FTSE 100.

1 year bonds at 5.9% aren't that far below double the yield of the FTSE 100 (2x 3.4 = 6.8%).

Let us suppose confidence returns to the markets and the FTSE 100 goes up by 15%. That's not that far-fetched, given that the FTSE 100, along with the global stockmarket as a whole, has yet to catch up with the last two years of inflation. Other things being equal, the FTSE 100 yield will drop to 3%, and a one-year FSCS-protected deposit account will become "too good to be true" by your definition.  

The S&P 500 is comparable in risk to the FTSE 100. A 1 year cash bond at 5.9% is 4.5 times the yield of the S&P 500 at 1.3%.

Double the dividend yield of the FTSE 100 is not a good way to measure the risk of an investment. If it looks like it is, it's a coincidence.

The only thing you need to look at for the "Thames Water" bond is that it's being sold via unsolicited email, therefore it's a scam. 

Eyeful

I agree that if it is being sold via an unsolicited Email its a scam. That applies also, to unsolicited calls or if the person attempting to sell you it is, is not on the FSCS Financial Service Register. 

(FTSE 100 yield x 2) is supposed to apply to investments, not to deposit accounts or bonds which are covered by the FSCS protection. I find it a useful first filter when thinking about risk, though, others may not agree.

When I see an unregulated investment Bond that is at or above that value, I think it is either very high risk or scam. I have not read anything to change my mind on that point.

eskbanker

This exchange does seem to be getting repetitive, but the fact remains that there is a genuine corporate bond available at 8.25% and a fake clone at the same rate, therefore the rate is less useful as a filter than all the other factors!