Anyone know about loan notes?

7
Found 5th Jun
I was looking around for different investments and came across loan notes, but the returns seem to good to be true - if they were that good then more people would be in on it, and they would be more widely known.

So if anyone has tried them or if you know to stay away then I would appreciate any insight you may have.

Thx
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Corporate - are less popular now following wee Georgy fiddling with the tax rules. Each one is a case to itself. DYOR. I kicked myself for missing the Wasps 6% bond but in hindsight (PWC resigning the audit after uncovering dubious bookwork), I am happy I did miss it and it typifies the sector for me.

Personal - I have one in place with a financially incontinent sibling in a desperate effort to try and make them realise how dangerous their lifestyle was to their kids futures and to try and protect my family by giving them a method to recover from the estate should there be anything left.

Personally, I regard Crowd Funding. Angels and similar vehicles offer better structure and better returns.

As with anything offering a good return; it's a high risk. If you don't do a lot of research to understand the underlying business and it's ability to generate the cash or growth return, the risk is stratospheric.
Edited by: "ccnp" 5th Jun
If you don't know how to play the game - don't bet. Same applies to the financial markets. If it's a pastime fair enough, but don't sink everything into something you know little about... That's madness.
mrty4 m ago

If you don't know how to play the game - don't bet. Same applies to the …If you don't know how to play the game - don't bet. Same applies to the financial markets. If it's a pastime fair enough, but don't sink everything into something you know little about... That's madness.


That's why I'm asking - also googling to find out more information.
mrty34 m ago

If you don't know how to play the game - don't bet. Same applies to the …If you don't know how to play the game - don't bet. Same applies to the financial markets. If it's a pastime fair enough, but don't sink everything into something you know little about... That's madness.


I wasn't judging... Just suggesting that maybe just dabble for a bit without risking too much to get experience.
Be optimistic and go with beginners luck.
You gotta be in it to win it.

Disclaimer, This advice is given with a solid pull your leg guarantee
Well the information out on the web is not particularly black and white, it's not that clear on the interest being paid and there is also mention of a rollover. And a lot of the information is from 2015-17, nothing seems to be current.

I was emailed information from one company promising 20% returns, that would be a hell of a lot for a company to return on a loan - so I think I'll give it a wide berth.
In terms of hierarchy loan notes are subordinate to bonds so a poorly performing corporate which ends up going under might write them off and leave you with nothing.
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