Low Interest Rates Are Feeding the Retail Bond Market

London, United Kingdom, March 24, 2013 --(PR.com)-- Increasingly, investors are buying retail bonds to diversify their portfolios and spread their risk.

In today's strange economic times, many investors are at a loss. They are struggling to find investment vehicles with good returns. Increasingly they are turning to relatively new investment vehicles, with Retail Bonds being near the top of many investors' lists. Generally, private investors have become more risk adverse, but, understandably, still want a good rate of interest or return.

Retail bonds tick both of the boxes. They are currently providing good rates of return and are a relatively secure form of investment. The fact that interest rates for cash are at an all time low is steering people away from traditional savings accounts. When inflation is factored in, there is little point in leaving money in the bank.

Bonds are a form of investment, which most people are already familiar with. They understand that a bond is effectively an IOU. The investor is effectively lending money to a corporation, business or other organisation for a pre-determined rate of interest.

Retail is a business model that the average man on the street understands. They buy products from retailers on a daily basis. It means that investors feel that they are making an informed choice when they invest in retail bonds. In most cases, they are investing in firms that they are familiar with, so they can choose to invest in those firms that they feel have the best business models. This additional element of control plays particularly well with today's investors.

Typical returns on retail bonds
The Retail Bond Expert has seen interest in the bonds that they trade increase. This is because returns of 5-10% are not unusual for retail bonds. The amount paid in interest depends on the strength of a company. Naturally new, as yet unproven new businesses have to pay more to borrow money, so these are the bonds that pay the most interest. However, there are plenty of big High Street names, in particular supermarkets, looking for funding. They pay a lower rate of interest, but represent an extremely secure investment. The fact that interest is paid yearly, sometimes twice yearly also makes retail bonds an attractive investment vehicle for small investors.

Contact:
Retail Bond Expert
70 St Mary Axe,
London, UK
Zip: EC3A 8BE
Tel: 02031024118
Email: info@retailbondexpert.com
Website: http://www.retailbondexpert.com
Contact
Retail Bond Expert
Kristen Connolly
02031024118
http://www.retailbondexpert.com/
70 St Mary Axe,
London, UK
Zip: EC3A 8BE
Email: info@retailbondexpert.com
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