Bonds

13

Comments

  • dunstonh
    dunstonh Posts: 116,359 Forumite
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    The return is legitimate. It reflects the risk of failure and the possibility of 100% loss of capital for the type of investment it is. i.e. high risk.
    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.
  • Malthusian
    Malthusian Posts: 10,938 Forumite
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    MrBen123 wrote: »
    Borrowing through the banks is more restrictive and slow. Borrowing through the banks is more restrictive and slow. Raising capital through a bond allows us to be reactive to developments as they come to us

    Translation: Banks ask more questions than people who click the first link they see on Google.
  • adindas
    adindas Posts: 6,813 Forumite
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    PMR33 wrote: »
    I have seen a bond advertised that offers 9.9% pa over 5 years. They operate an insurance scheme to protect up to £75k. Company is Blackmore Investments and they are property developers. It sounds too good to be true! So is it? Does anyone have any experience of this company? They are relatively new so there is little online about them.

    Are you from Blackmore Investments to promote your product ?

    Newly created profile just to post this product ?

    Do you have link mentioning that it is under FSCS protection up to £75K ?

    As someone has said why would they bother with paying 9.9% to Joe Public when they can borrow for around 3% from a bank ?

    It is only a complete idiot is going to believe that your capital is not at risk at the interest rate of 9.9%.
  • Jo_Blogs
    Jo_Blogs Posts: 753 Forumite
    Debt-free and Proud! Mortgage-free Glee!
    DrSyn wrote: »
    4. Suggestion " If it sound to good to be true, let someone else have it."

    Very sound advice. More than happy to let someone else have this bond that's for sure!
    Saved Nitty Gritty £7440.75 [149%] / £5000-[Sep] £58.44:starmod: for the 'Save 12k in 2017' #157
    2017 Womble #35 £3463.27 ;)Sept NSDs 4/15:staradminCCCChl 9/12 months:D    Sept PPChl#002 Pts 71
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Malthusian wrote: »
    Translation: Banks ask more questions than people who click the first link they see on Google.

    Banks aren't in the market to provide risk capital. Far better to leave it to investors who can afford a potential loss. Property was the reason that some of UK banking operations suffered so badly in the GFC. After Lloyds merged with HBOS. For a period of time Lloyds was the 4th largest house builder in the country. Until it disposed of the share stakes and ownership acquired.
  • Malthusian
    Malthusian Posts: 10,938 Forumite
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    Thrugelmir wrote: »
    Banks aren't in the market to provide risk capital. Far better to leave it to investors who can afford a potential loss. Property was the reason that some of UK banking operations suffered so badly in the GFC. After Lloyds merged with HBOS. For a period of time Lloyds was the 4th largest house builder in the country. Until it disposed of the share stakes and ownership acquired.

    All of which is true but people who have gulled themselves into believing they are opening a fixed rate deposit bond when they are buying an ultra-high-risk loan note are unlikely to categorise themselves as "investors who can afford a potential loss".

    The general point is valid, regardless of what banks' risk policies may be at this point in time. Investors should ask themselves a) why such high rates are being offered and b) why they are being offered to people who put "best fixed term rates" into Google and click the first result instead of funds and other institutions.
  • xQueenDestinys
    xQueenDestinys Posts: 1 Newbie
    I have purchased a bond from Blackmore, all the information was quite clear this was high risk, 9 months in no problems. They contact without high pressure sale, Its high risk, if you can afford to lose it why not try it. A holiday cost the same to some and has no return.
  • jamei305
    jamei305 Posts: 635 Forumite
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    xQueenDestinys wrote: »
    I have purchased a bond from Blackmore, all the information was quite clear this was high risk, 9 months in no problems. They contact without high pressure sale, Its high risk, if you can afford to lose it why not try it. A holiday cost the same to some and has no return.

    You lent money to what appears to be a property development company with no track record of successful developments? Not sure I'd want to put capital at risk for such a small return.
  • Fatbritabroad
    Fatbritabroad Posts: 573 Forumite
    First Anniversary First Post
    I would say if you want to lend on property use one of the p2p sites who offer higher rates than this and at least they are crystal clear what you are buying
  • coyrls
    coyrls Posts: 2,432 Forumite
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    xQueenDestinys wrote: »
    if you can afford to lose it why not try it. A holiday cost the same to some and has no return.

    Do you really think this is a convincing argument?
This discussion has been closed.
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