An estimated 22 million people hold Premium Bonds. That's around a third of the country. But why do they remain so popular?

As Premium Bond prizes are reduced yet further below inflation, Simon Read asks why they remain so enduringly popular

One of the most exciting innovations of recent times has been the development of social-impact bonds. These are loans raised in the markets or from private investors where the money is invested to finance and improve the social outcomes delivered by publicly funded services and the return on the bonds is linked to the success of the venture.

It is still difficult to see interest rates in the UK rising before the next general election.

US Federal Reserve Chairman Ben Bernanke has introduced the term ‘taper’ to the lexicon of central banking. European Central Bank President Mario Draghi’s stated strategy is “whatever it takes”. Economic Commissioner Olli Rehn recently clarified that European policies were directed at ‘diluting’ not ‘breaking’ the link between banks and sovereigns.

Outlook The Co-op Bank's retail bondholders are the big losers in its forced recapitalisation. They're not going to take it lying down. Before anyone underestimates their ability to create problems for the Bank of England's Prudential Regulatory Authority (which they took aim at yesterday) and even the Government, then consider the example of another mutual in the form of Equitable Life.

The Analyst

Outgoing Governor says world economy still far too weak to allow interest rate rises

Global sell-off on Fed move wipes out the last of the gains made by London's benchmark FTSE 100 this year

At the time of writing, the UK stock market, as measured by the FTSE All Share Index, has fallen around  7 per cent from the high it reached just a few weeks ago.

The embattled pub group Punch Taverns has proposed a radical restructuring of its £2bn-plus debt mountain, and posted improved trading.

The US economy did not expand as fast as initially thought in the first three months of the year, a new report showed yesterday, as Washington-mandated belt-tightening hit government spending.