One eye on growth
Article Abstract:
Investors seeking an income may be prepared to accept a medium level of risk in order to obtain the chance of some capital growth. Suitable vehicles for such investors include government securities, preference shares, corporate bonds, and split-capital investment trusts with annuity and income shares. Government securities are low-risk when held to maturity and medium risk when sold before maturity. Corporate bonds carry higher risk but also offer a higher income. Investors should time their sales well in order to obtain capital gains from bonds.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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The DIY guide to bonding with your Pep
Article Abstract:
UK investors interested in personal equity plans (Peps) for income should consider using corporate bonds as part of a self-select Pep. They will thus be able to choose which bonds to include. They need to assess the credit risk involved and credit rating agencies can help provide information on this. Settlement charges for Eurosterlings tend to be high since this tends to be the domain of institutional investors. Charges levied by brokers should also be assessed.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Bond-risk bearings
Article Abstract:
Investors in bonds should be aware of credit ratings for the products they consider buying. Bonds can fall in value even if they have a high rating due to inflation, higher interest rates and other factors. Ratings provide information on bonds' creditworthiness. Compensation is not available if companies go bust, as happened with Barings. Risk ratings are awarded by specialist agencies, though not all bonds are rated and ratings need to be interpreted.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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