Ben Chu: Some guidance for Co-op bondholders
Outlook If the behaviour of bank management teams should worry us, the same can be said of some bank investors. An action group of Co-op bondholders are complaining that they are being forced to take a hit to help shore up the ailing bank's balance sheet. They argue that the wider Co-op group should put its hand in its pocket to cover the bank's entire £1.5bn capital hole, leaving them unscathed.
I'd like to ask these debt holders a question: if they thought they were buying a rock-solid investment, did they never wonder why there was a 13 per cent annual coupon payment attached? Here's some guidance: a high coupon means high risk. If you want zero risk, put the money in gilts and live with the low returns.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Gingers face extinction due to climate change, scientists warn
- 4 BBC’s new Game of Thrones slayer 'The Last Kingdom' relies on Saxon appeal, creators say
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Gingers face extinction due to climate change, scientists warn
Pamplona Running of the Bulls 2014: Briton critically injured in San Fermin festival
Israel's deadliest Gaza air strikes yet kill five children from same family as Palestinian rocket barrage continues
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£60000 - £90000 per annum: Harrington Starr: A leading provider of buy side tr...
Negotiable: Harrington Starr: Electronic Platform Engineer (Linux, UNIX, Perl,...
£25000 - £30000 per annum: Harrington Starr: Market Making Support Analyst - (...
£40000 - £60000 per annum: Harrington Starr: UNIX Application Support Analyst-...