Corporate Debt in the Banks

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DerKaiser

Registered User
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Just a quick question on how i might go about investing in corporate debt issued by Irish banks. Given that they are effectively government bonds for the next two years it seems like a good idea to me (In theory!).

Also can the common man get convertible debt ala Warren Buffet. I'm not a greedy man, I'd settle for 8% return with the conversion at the current share price (I believe Warren gets 10% and conversion terms meaning he's already in the money!)
 
Your stock broker should be able to sort you add with the financial bonds.

Convertible bonds are traded, so you could buy them in the secondary market, though not the ones Warren was offered. Be careful, these are complex instruements and contain more risk than you may realise. Being 10% in the money doesnt mean alot in these markets.
 
Yeah be very careful with convertible bonds unless you know what you are doing. These bonds can be deeply subordinated and may not be covered by the guarantee and as mentioned above, there are plenty of other risks as well.
 
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