PIBS look a bit of a risky investment.

The PIBS issued by UK building societies look a bit of a risky investment with the possibility that coupons will not be paid. The rescue of West Bromwich Building Society has shown their true position in the pecking order for creditors and it is not good. The securities were bought for their yields but unfortunately the yields have gone up.
The PIBS of demutualised building societies converted into perpetual subordinated bonds. While the Nationwide, the flagbearer for the industry, is offering a running yield of 11 pct on its issue of 7.25 pct according to the Investors Chronicle, which highlights the risks and rewards of this area. The original investors in the Nationwide issue have taken a battering on the capital performance of
the PIBS.
This is an esoteric part of the market and perhaps not one for many financial advisers.
www.searchifa.co.uk