London Capital & Finance - Bonds

Jo2016
Jo2016 Posts: 1 Newbie
in Savings & investments
Are the fixed rate bonds with London Capital & Finance as good as they appear? Their interest rates are much better than anything else available at the moment.
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Comments

  • dunstonh
    dunstonh Posts: 116,362 Forumite
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    Are the fixed rate bonds with London Capital & Finance as good as they appear?

    Depends on what your definition of what they appear is. To me, they are an unregulated bond with 100% capital loss that is badly marketed (on purpose) to pretend it is something else to people that don't know what they are doing.
    Their interest rates are much better than anything else available at the moment.

    No they are not. There are other 100% loss potential risk based investments with comparable or high yields.

    See previous threads on this subject.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ColdIron
    ColdIron Posts: 9,043 Forumite
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    Go to the search box above the posts type in "London Captial and Finance" and read one of the threads that already exists on this subject
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Looks as though they will be doing good business from the numerous threads on here.

    This should really be something addressed by either the financial regulator and/ or the Asa, there is something wrong with the adverts to be attracting the sort of people who expect a deposit account.
  • jimjames
    jimjames Posts: 17,618 Forumite
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    bigadaj wrote: »
    This should really be something addressed by either the financial regulator and/ or the Asa, there is something wrong with the adverts to be attracting the sort of people who expect a deposit account.
    Absolutely. I find it quite incredible that unregulated investments can be sold with a scam or false guarantee to retail investors who have no knowledge or understanding of the difference. You only need to see the thread about another of these outfits and the sums that have supposedly been lost to see how lucrative it is for the owners who in the eyes of the law appear to have potentially done nothing wrong legally that they could be convicted of.
    Hopefully they'll do less good business if they get readers coming on these threads.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • george4064
    george4064 Posts: 2,811 Forumite
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    Read here: http://forums.moneysavingexpert.com/showthread.php?t=5346049
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2021 - #027 £15,268 (76%)
  • DrSyn
    DrSyn Posts: 889 Forumite
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    You have not stated what interest rate these bonds are stating they will pay. As a filter, applying some simply logic would help.

    Today

    Best safe 3 year investment in a bank about 1.6%.

    FTSE 100 yields about 4%.

    Stockmarket long term returns are expected to be about 6%

    The stockmarket is a risk investment. So anything higher than this is either

    (a) High risk investment. In which case why not put it in a FTSE 100 fund, instead of just one company.

    (b) Scam of some type. In which case you would be better of not putting your money there!
  • jimjames
    jimjames Posts: 17,618 Forumite
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    george4064 wrote: »
    Read here: http://forums.moneysavingexpert.com/showthread.php?t=5346049
    Or this as a warning of what can happen with unregulated investments paying too good to be true rates


    http://forums.moneysavingexpert.com/showthread.php?t=5549141
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Superscrooge
    Superscrooge Posts: 1,171 Forumite
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    edited 16 July 2017 at 7:30PM
    Jo2016 wrote: »
    Are the fixed rate bonds with London Capital & Finance as good as they appear? Their interest rates are much better than anything else available at the moment.

    This is a high risk investment. You might get the 8% interest they quote, or you night lose ALL your investment. I've pasted below the disclaimer they display on their website

    Investors should note that repayment of the bonds offered by London Capital & Finance Plc, and the payment of interest on the bonds, depends on the performance of loans made by London Capital & Finance Plc to various small and medium-sized enterprises. In the event that these borrowers default on the loans, investors may lose some or all of their investment. Investment in the bonds of London Capital & Finance Plc is therefore speculative and involves a degree of risk.


    Nationwide Flexdirect and some of the Regular Savers pay 5% and your capital is secure. A much safer option! .
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Superscrooge, Bail-In is for some reason waking up any thread he can find about LC&F.
    This one was 8 months dormant before he poked it with his blunt stick.
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    AnotherJoe wrote: »
    Superscrooge, Bail-In is for some reason waking up any thread he can find about LC&F.
    This one was 8 months dormant before he poked it with his blunt stick.

    Not sure if Bail-In is a spammer or spanner.
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