{"id":1743,"date":"2016-08-26T01:20:45","date_gmt":"2016-08-26T01:20:45","guid":{"rendered":"http:\/\/asadkarim.co.uk\/?p=1743"},"modified":"2016-08-12T12:22:31","modified_gmt":"2016-08-12T12:22:31","slug":"potential-default-on-bonds-from-the-manchester-building-society","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=1743","title":{"rendered":"Potential Default on Bonds from The Manchester Building Society."},"content":{"rendered":"<p>The Manchester Building Society is struggling in the 0.25% Base Rate climate.<\/p>\n<p><a href=\"http:\/\/www.themanchester.co.uk\/\" target=\"_blank\">http:\/\/www.themanchester.co.uk\/<\/a><\/p>\n<p>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.<\/p>\n<p>In October 1999 the Society issued <strong>\u00a35 million<\/strong> of PIBS. 5,000 individual shares were issued and each one had a nominal value of \u00a31,000. In April 2005, a further <strong>\u00a310 million<\/strong> of PIBS was issued. 10,000 individual shares were issued and each one had a nominal value of \u00a31,000<\/p>\n<p><a href=\"http:\/\/www.londonstockexchange.com\/exchange\/prices-and-markets\/debt-securities\/company-summary\/GB00B0712W15GBGBPSTBS.html?ds=0&amp;lang=en\" target=\"_blank\">http:\/\/www.londonstockexchange.com\/exchange\/prices-and-markets\/debt-securities\/company-summary\/GB00B0712W15GBGBPSTBS.html?ds=0&amp;lang=en<\/a><\/p>\n<p>So it pays <strong>6.75%<\/strong><\/p>\n<p>Look at the chart. A dramatic collapse is price.<br \/>\n<a href=\"http:\/\/www.londonstockexchange.com\/exchange\/prices-and-markets\/debt-securities\/company-summary\/GB0008775057GBGBPSTBS.html?ds=0&amp;lang=en\" target=\"_blank\">http:\/\/www.londonstockexchange.com\/exchange\/prices-and-markets\/debt-securities\/company-summary\/GB0008775057GBGBPSTBS.html?ds=0&amp;lang=en<\/a><\/p>\n<p>This one pays <strong>8%<\/strong> to investors.<\/p>\n<p><a href=\"http:\/\/www.londonstockexchange.com\/exchange\/news\/market-news\/market-news-detail\/MBSR\/12927103.html\" target=\"_blank\">http:\/\/www.londonstockexchange.com\/exchange\/news\/market-news\/market-news-detail\/MBSR\/12927103.html<\/a><\/p>\n<p>But it looks like they may miss the next payment. A default.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 \u00a35 million of PIBS. 5,000 individual shares were issued and each [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1743","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1743"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1743\/revisions"}],"predecessor-version":[{"id":1744,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1743\/revisions\/1744"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}