Permanent fixtures
Article Abstract:
Permanent interest bearing shares (Pibs) were introduced by the Bulding Societies Commission to allow United Kingdom building societies to raise capital. Pibs are not normally redeemed by building societies, so investors have to sell them on the secondary market. Pibs pay what appear to be very high levels of interest and this is because rates were high in 1992 in the early stages of Pibs. Rates have since dropped and the price of Pibs has risen. Holders of Pibs usually have voting rights as members of the building society that issued them.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Signposts on the road to a higher income
Article Abstract:
Investors seeking to obtain an income should beware of yields so high that capital is eroded. They should aim to have easy access to some of their capital, achieve protection from inflation, with some capital growth as well as a rising income, and have a fixed income stream. Investment trusts and unit trusts are one way of spreading risks. Creditworthiness of issuers is important if corporate bonds are selected as investment vehicles, and inflation and interest rate forecasts are important where fixed-interest investments are concerned.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Taking the plunge
Article Abstract:
Index trackers have some advantages as vehicles for repaying mortgages, compared to with profits funds or unit linked funds. Investors should understand the risks involved. Repayment mortgages involve a low risk, since the mortgage is repaid when its term ends, but little is repaid initially since interest consumers much of the initial payments. Householders who move often may be better off with interest-only vehicles, and they can use United Kingdom individual savings accounts for tax efficiency.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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