In the current low-interest-rate environment, many yield-seeking private investors have been willing to take extra risks for more income by buying permanent interest-bearing shares (Pibs). New EU regulations mean that these might become scarcer from next year. So what should investors do?
What are Pibs?
Pibs are securities that have been issued by building societies and which usually pay a fixed rate of interest. Some Pibs pay floating rates of interest that move in line with general rates of interest. They are bought and sold like shares on the stock exchange.
Pibs are ‘permanent’ in the sense that they [...]
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