Corporate bonds - the full story on Peps

Article Abstract:

United Kingdom corporate bonds have performed well in the two years to 1998, and they can be included in personal equity plans (Peps) with the tax advantages offered by Peps. The bonds have to have a minimum 5-year life and should not have been an issue from a financial company. Managed corporate bond Peps allow risk to be diversified. Investors need to locate brokers offering corporate bond dealing services which is geared to the needs of small investors.

Personal Financial Mgmt, Personal finance

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Other options: thrills without the spills

Article Abstract:

UK investors can select a number of ways of providing an income, including annuities and government securities. Annuities involve loss of control of capital and timing of an annuity purchase affects income levels. Government securities involve a long term commitment and the value of the capital could be eroded. Permanent interest bearing shares are a type of bond with a fixed income rate. Guaranteed income bonds pay a set income during the bond's life.

Annuities

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Coporate bond Peps make their mark

Article Abstract:

UK corporate bond personal equity plans (Peps) were introduced in summer 1995, and provide tax benefits, in addition to an income with a low risk level. Bond markets are not a volatile as stock markets, and the risk of default can be lessened by spreading investments over a number of companies. Returns are affected by a number of factors including charges levied by managers. Inflation can affect both the income and capital value of corporate bonds.

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