Anybody investing in PIBS were recently stunned by the events at the West Bromich BS where the bond holders were effectively forced to be come shareholders to save the building society.
The knock on effect in the PIBS market was rapid and profound with many investors running for the door at the prospect of their nice safe income generating investment being threatened.
Analysing the effects using the selftrade website which shows daily updates of PIBS prices.
The figures show that the weakest building societies had the values of their PIBS decimated as investor ran for the door. However, in recent weeks PIBS prices have started to stabilise as confidence returns to the market. In the last month the Coventry 12% PIBS has recovered by almost 30%. Despite this recovery it is still almost down by 25% over the last year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment