The High Price of Bond Safety

Mail on SundayJuly 17, 2006

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Summary


WHENEVER the stock market looks wobbly, as now, finance firms are quick to promote investments that promise benefits of stock market growth, but with guarantees to limit potential losses.

Known as guaranteed equity bonds (Gebs), these are closely related to the failed precipice bonds sold in their thousands before the dotcom crash.

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The High Price of Bond Safety

With these, cash was at risk only if markets fell by a huge amount. But mark...

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