Opinions Please. PIBS, subordinated bonds etc

ed

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Good Morning,

What is the general consensus on purchase of PIBS, Subordinated Bonds etc?
I notice that Northern Rock and Bradford & Bingley are showing some juicy yields in their permanent bond offerings. As these are effectively a government owned organisation, there seems to be little downside of them going bust. Also Britannia is nearing 10% on some of its bonds. I am also led to believe that as these are paid out with corporate tax paid renders them free of personal income tax....is this so?

rgds....Ed
 
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