Permanent interest bearing shares: a high-yield play on building societies

Permanent interest bearing shares (Pibs) are a form of debt issued by building societies. If you pick the right Pibs, you could lock in high returns. But beware, they can be a risky investment. So which Pibs look attractive now?

"They've been seen as a nice little earner in the past," says Annie Shaw in the Daily Express. But permanent interest bearing shares (Pibs) are no longer the safe, boring investments they once were and more's the pity.

A form of debt issued by building societies, Pibs are similar to corporate bonds, trading on the Stock Exchange and paying a fixed rate of interest twice a year. But after the collapse of Bradford & Bingley and the recent refinancing of the West Bromwich Building Society, investors are realising Pibs are nowhere near as safe as they once thought.

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