Podcast Summary
LinkedIn: The Hidden Pool of Potential Candidates for Small Businesses: LinkedIn is a powerful hiring tool for small businesses, providing access to a large pool of passive job seekers. Mini bonds offer higher interest rates than savings accounts but come with risks and are not eligible for ISAs. Mint Mobile offers a reverse auction for wireless plans and the mini bond market is growing.
LinkedIn is a valuable resource for small businesses looking to hire professionals. It's where you can find candidates who might not be actively searching for a new job but could be open to the right opportunity. In fact, over 70% of LinkedIn users don't visit other leading job sites. So, if you're serious about hiring, start your search on LinkedIn. Meanwhile, in the world of investments, mini bonds have been gaining popularity as an alternative to traditional savings accounts and fixed rate savings bonds. These instruments, which are typically issued by larger companies, offer better interest rates. However, they come with risks and are not eligible for popular tax wrappers like ISAs. It's important for investors to understand the differences between various types of bonds and make informed decisions based on their financial goals and risk tolerance. In other news, Mint Mobile is offering a reverse auction for its wireless plans, allowing customers to bid down the price. And, the market for mini bonds is expected to reach £8 billion by the end of 2017. Stay tuned for more updates on these and other financial stories.
Retail bonds offer alternative investment option to traditional corporate bonds: Consider tax wrappers like ISAs and diversify income streams through corporate bond funds for retail bonds' lack of secondary market and professional evaluation
Retail bonds, which include government, corporate, and high yield bonds issued in smaller denominations for individual investors, offer an alternative investment option to traditional corporate bonds with larger minimum investments. However, mini bonds, a type of retail bond, raise concerns due to the lack of a secondary market for trading and evaluating investments, making it difficult for individual investors to assess risk and exit the investment before maturity. These concerns, coupled with the popularity of mini bonds in a yield-hungry market, highlight the importance for investors to consider the availability of tax wrappers like ISAs and to diversify their income streams through corporate bond funds, which provide tax-free income and professional evaluation and risk assessment.
Understanding the Risks of Equity Income Funds and Corporate Bonds: While equity income funds and corporate bonds can offer attractive yields, they involve varying degrees of risk. Government bonds are currently unattractive due to yields below inflation. Self-build, though a niche activity, is a government priority to increase new home supply.
While equity income funds and mini bonds can offer yields above 4%, they come with varying degrees of risk. Bonds, including corporate bonds, are not risk-free as Warren Buffett's comments suggest. Government bonds, or gilts, are particularly unattractive due to yields below inflation, which guarantees a loss in real terms. Despite the talk of a great rotation out of bonds into equities, investors may be willing to hold onto corporate bonds due to low interest rates and returns on cash. It's essential to understand the risks involved in any investment, including the potential for losing capital, and considering expert advice from fund managers. Self build, though a niche activity, is a government priority to increase new home supply. While only 7.6% of new UK homes were self-built last year, countries like Hungary and France have much higher proportions. The government aims to encourage self-builders to help address the housing shortage.
Challenges in Self Building in the UK: Despite obstacles like accessing land, red tape, and financing, self building in the UK can be achieved by being realistic, understanding costs and regulations, and utilizing available resources and funding options.
Self building in the UK faces challenges due to difficulties in accessing land, navigating red tape and planning permission, and securing financing. However, the government is taking steps to help, including offering practical information through the Self Build Portal, providing short-term loans for group schemes, and encouraging local authorities to allocate land for self-build projects. To succeed in self building, individuals should be realistic about the process, understand the costs and regulations involved, and explore available resources and funding options.
From Land to Home: The Long Journey of Self-Building: Self-building a home takes 3-5 years, involves living in temporary accommodations, and requires thorough research, a 10% contingency fund, and patience.
Building your own dream home through self-building is a long-term and complex process. On average, it takes 3-5 years to find a plot of land, secure planning permission, and construct the house. During this time, you may need to live in temporary accommodations like caravans, which can be challenging. Before embarking on this journey, it's crucial to do thorough research, consider a 10% contingency fund, and be prepared for unexpected costs. For self-build to become more popular, there needs to be a shift towards making it more accessible to first-time buyers and people on lower incomes, as well as promoting group schemes to reduce costs by up to 40%. Overall, self-building is a significant investment that requires careful planning, patience, and resources.
The Co-op Bank's Financial Woes: Expansion Plans and Missteps: The Co-op Bank's expansion plans led to insufficient capital, causing a failed acquisition attempt and a Moody's debt downgrade. Past acquisitions, like the 2009 merger with Britannia, contributed to the bank's financial instability, impacting account holders and investors.
The Cooperative Bank found itself in a precarious financial situation, leading to a downgrade of its debt by Moody's and concerns about its future. This predicament stemmed from the bank's ambitious expansion plans, which saw it attempt to purchase over 600 branches from Lloyds Banking Group but ultimately failed due to insufficient capital. The Co-op's financial woes can be traced back to its past acquisitions, such as the 2009 merger with Britannia, which tripled its bank branches in the UK. The bank's missteps led to a significant drop in its creditworthiness and raised questions about the impact on ordinary account holders and investors. The Co-op's fall from grace as a potential challenger to the UK's big high street banks is a reminder of the importance of sound financial management and the potential consequences of overreach.
The Co-op Bank's financial troubles and their impact: The Co-op Bank's financial difficulties, which came to light in 2013, have led to potential implications for its other business areas and investor holdings. The bank is working with the financial regulator and selling assets to address the capital hole.
The Co-op Bank's financial troubles, which came to light in 2013 despite the bank growing significantly since 2009, have raised questions about why a large capital hole wasn't identified earlier. For those with accounts at the Co-op or Smile, their savings are covered by the Financial Services Compensation Scheme up to £85,000 per person. However, the extent of the Co-op Group's financial difficulties could impact its other business areas, such as funeral plans, insurance, travel, and financial advice. The Co-op Group is currently in talks with the financial regulator and selling off assets to address the capital hole. Investors in the Co-op's preference shares and perpetual investment bonds have seen a decline in their holdings' value due to this news. The Co-op isn't publicly traded, but its investors are advised to closely monitor the situation. The potential implications for the Co-op Group's future are still uncertain.
Co-op Bank's Financial Instability Causes Bond Sell-Off: Investors are concerned about the Co-op Bank's financial stability, leading to a sell-off of their bonds and a dramatic drop in price. Some see this as a buying opportunity, while others worry about potential losses if called upon to help fill capital holes.
That there are concerns about the financial stability of the Co-op Bank, leading to a sell-off of their bonds and a dramatic drop in price. Bondholders are worried about the possibility of being called upon to help fill any capital holes, which could result in losses for them. However, some investors see this as a buying opportunity due to the dramatic fall in price and the belief that the Co-op will be able to work out a deal to avoid collapse. It's important to note that there is currently no suggestion that anyone's capital is at risk. Additionally, the regulatory environment and goodwill towards building societies and mutuals could help the Co-op in resolving their current issues. Other topics discussed in the podcast include potential overvaluation of defensive blue chip shares, the advantages and disadvantages of the funds industry structure, the latest on Harlequin Property, and an interview with Roger Saul of Mulberry on his business success. For more information, listeners can visit ft.com/money or follow FT Money on Twitter.
Creating Meaningful Connections with Love and Dedication: 1800flowers.com goes beyond transactions to create meaningful connections through love, care, and attention to detail in every product and service.
1800flowers.com is not just a go-to destination for gifting on special occasions like birthdays and anniversaries. It's a place where love, care, and attention to detail are put into every product and service they offer. From their farmers and bakers to their florists and makers, everything at 1800 Flowers is made with love and dedication. They understand that delivering a smile is important, and that's exactly what they aim to do. It's more than just a transaction; it's about creating meaningful connections and celebrating life's special moments with friends and family. To learn more about the story behind 1800flowers.com, visit their website at 1800flowers.com/acast.