Debentures

[nev]

anyone have any feed back on debentures i have a substantial sum in debenture stock,pays me 8.5% secured,

when they say secured how secure really are they.

read the prospectus all seem in order steady profit growth ect,but i still have worry i will loose the lot,lol.by being secured it says that if something happens the secured investors are paid out first.

so really how secure are they should i keep rolling over and is there a chance of loosing the lot and can i sleep easy at night,these debentures are in australia,

web www.fincorp.com.au

thanks for any feedback, nev

[expatinasia]

I haven't checked the website that you provided. However, since this is YOUR investment, I'd suggest that YOU make certain of the security. From your description, you have "subordinated" debentures, which essentially means, you will get paid last. OK, OK, there are a lot of technical, financial, and legal terms that need to be used....I'm trying to use laymen's terms. In an age where CD's pay 2%, and T-bills not much more than that, it would seem that the high return is tied to an exceptional level of risk. If this represented the bulk of MY retirement, I'd be worried...

[nev]

thank you for you concern,they secure there income from short term loans to buisness and building companys,if they default there is a risk,when property is booming no problem but with the downturn in the building industry i am getting worried.

so it is the end of my investment term so i will be pulling out and go back to my on line banking account ing and get a secure 5.4%intrest calculated daily.

[expatinasia]

You'll lose some interest income, but you won't lose any more sleep ; )

[chownah]

thank you for you concern,they secure there income from short term loans to buisness and building companys,if they default there is a risk,when property is booming no problem but with the downturn in the building industry i am getting worried.

so it is the end of my investment term so i will be pulling out and go back to my on line banking account ing and get a secure 5.4%intrest calculated daily.

<{POST_SNAPBACK}>

Can you post the internet site for a bank that gives 5.4% secured? This seems really high to me. Maybe secured doesn't mean insured? I can get a 5 year CD paying just under 5% and it is insured. This is in the USA.

[nev]

www.ingdirect.com.au

it is a internet only site and no fees intrest is calcul;ated daily dont no if you can use this account from overseas but would be worth while if you can. nev

[nev]

You'll lose some interest income, but you won't lose any more sleep  ;  )

<{POST_SNAPBACK}>

too true mate i am glad i have off loaded them was getting worried and the more research i did the more warnings i was getting.asic issued a warning saying dont get burnt by debentures.