The Manchester Building Society is struggling in the 0.25% Base Rate climate.
http://www.themanchester.co.uk/
Apart from using deposits to fund mortgages, The Manchester Building Society, has issued Permanent Income Bearings Shares to raise cash, (PIBS). These are debt instruments.
In October 1999 the Society issued £5 million of PIBS. 5,000 individual shares were issued and each one had a nominal value of £1,000. In April 2005, a further £10 million of PIBS was issued. 10,000 individual shares were issued and each one had a nominal value of £1,000
So it pays 6.75%
Look at the chart. A dramatic collapse is price.
http://www.londonstockexchange.com/exchange/prices-and-markets/debt-securities/company-summary/GB0008775057GBGBPSTBS.html?ds=0&lang=en
This one pays 8% to investors.
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MBSR/12927103.html
But it looks like they may miss the next payment. A default.