Where To Invest >200,000 pounds with maximum interest and security?

Aegis

napoleon wrote: »

I can't believe no-one has suggested investing the lot by buying bank shares, preferably HBOS. It'll be as safe as houses I reckon.

What?? Why on earth would anyone recommend that for a secure investment??

Direct equity investment is one of the riskiest ways to invest your money, and is totally unsuitable for someone wanting to maintain security of capital. Even now the banks are on very shaky ground, and its possible that some more of them are going to take dives at some point.

Look at HBOS in the last couple of weeks. A single rumour of them needing emergency funding from the BoE and their share price dropped 15-20% in a single day! Now imagine if they had actually needed that funding...

All in all, a terrible idea if you want security of capital.

Banderman

I think he was pulling your leg!

Aegis

Banderman wrote: »

I think he was pulling your leg!

I sincerely hope so!

The trouble is that I've seen more than enough people say such things and mean them, and worse yet saw others actually follow such suggestions during the Northern Rock crisis, investing at 600, 400, 300, etc. Now some of them are left with thousands of shares that are worth only a fraction of their purchase price... A very sad situation all round, and not one I want to see anyone rush into in a hurry!

whiteflag_3

Lokolo wrote: »

Oh right I thought they would do more than just investments when large sums of money are involved, nevermind!

They do ! Nothing wrong with your suggestion as far as Im concerned

Some IFAs would be happy to advise( and have MiFID passports)- one potential suggestion would be holding cash in an offshore bond with say Irish Nationwide or Northern Rock mentioned earlier.

Most offshore bonds (Dublin , Isle of Man etc) have better investor protection than UK investment bonds- 90% first £2000 and 100% thereafter, however the OP would have to invest in funds to benefit from this extra protection, but after meeting with an IFA who knows they might be prepared to take a little risk or give up the opporunity for the highest returns for increased investor protection.

ianmr65

Mr_Mumble wrote: »

http://forums.moneysavingexpert.com/showpost.html?p=9364943&postcount=69
I got the info from this transcript:
http://ftalphaville.ft.com/blog/2008/03/14/11595/markets-live/

The same MSE thread has other credit default swap figures. CDS numbers do change all the time and aren't widely available (unless you've got a Reuters or Bloomberg terminal handy).

Bloomberg news search sometimes carries the lastest CDS spread for a particular bank, but you should treat these with a pinch of salt, as the current CDS spread for GE is about 200, and the CDS spread for the US federal reserve gilts is 16. The CDS market is a bit distressed at the moment

Now the likely hood of General Electric defaulting is roughly zero. And the likely hood of the US fed defaulting BEING AS THEY PRINT ALL THE MONEY, is considerably less than zero.

So potentially people are actually paying to insure $10m of us goverment debt for $16k. This is like insuring against the sun coming up tommorow.

In fact they are only really doing this, as the german bund debt is $14k, and they are arbitraging (trading) the difference to get margin, but it does show the madness of this particular market.

m1ntie

I think this would take some beating.

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