Supply Chain Finance Bond

[rf1980]

Saw an advert in the Sunday Business Post today about a "Supply Chain Finance Bond" which sounds fairly appealing. The details are at http://www.bespoketrustees.ie/investments/ with the significant points being
1) Low risk, 100% of assets insured
2) 5% annual coupon paid quarterly
3) 3 year 3 month term

Seems like a reasonable investment if you have a lump sum to put away and certainly more than getting in a savings account.

What would be the pertinent questions to enquire about such an investment before signing up?

r

 

[Steven Barrett]

If it sounds too good to be through, it usually is. Structured bonds are heavily weighted in favour of the promoter. They get all of the upside, you bear all the risk. Have you read the small print?

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Brendan Burgess]

We have analysed all of these over the years and it can take a lot of effort and reading to spot the catch.

The simplest thing is to avoid. You may read the terms and conditions in some detail and still not spot the catch.

Brendan