Retail bonds brochure

2012 saw an increasing number of UK companies launching bonds specifically targeting retail investors, described as ‘retail bonds’. These are separate from the far larger corporate bond market dominated by institutional investors and should not be confused with investment ‘bond’ products sold to retail investors by life assurance companies. Retail bonds are expected to remain popular throughout 2013.Retail bonds are becoming a popular way for companies to raise funds, particularly at a time where capital-starved banks are not readily lending to businesses. This enthusiasm is being matched by investors, who are seeking alternatives to traditional savings products and equities. Not all retail bonds, however, are sold with the primary aim of raising capital. Some retail bonds are more of a marketing strategy aimed at cementing customer or employee loyalty and the sums raised can be relatively small.