3212 x 4930 px | 27,2 x 41,7 cm | 10,7 x 16,4 inches | 300dpi
Aufnahmedatum:
22. Dezember 2018
Ort:
50 Oxford St, Manchester, England, UK, M1 5EJ
Weitere Informationen:
How investors got burned by Chilango's burrito bonds As investors in restaurant chain Chilango's burrito bonds face losing all their money With average interest rates on savings accounts falling to under 1% for the first time, promises of 8% returns are bound to attract attention. But don’t be fooled into placing your cash in high-risk mini-bonds. A mini-bond is a high-risk form of corporate debt. This is something investors in restaurant group Chilango are just discovering. More than 1, 000 people bought £5.8m of its mini-bonds. The investments were dubbed “burrito bonds” because if you invested more than £10, 000 you could claim one free burrito a week. In November 2018 MoneyWeek warned readers to “think long and hard before you sink your money into the burrito bond”. Now the vast majority of those bond holders stand to lose their money after Chilango announced it is entering administration. They “will be reliant on returns from the sale of its assets, which the company warned last year could lead to them losing 99% of their investment”, says Sarah Butler in The Guardian. This is only the latest example of the significant risk mini-bonds present. In 2015 Secured Energy Bonds collapsed, losing investors more than £7m. In January 2019 London Capital & Finance (LCF) went bust, leaving 12, 000 investors facing a £236m loss. “Mini-bonds are examples of high-risk investment products that should come with a health warning, ” Myron Jobson, a personal finance campaigner at Interactive Investor, told The Times. “If something seems too good to be true, it usually is.” Mini-bonds are an unregulated product The problem with mini-bonds is that while the marketing is regulated, the product isn’t. This means that, unlike cash savings, money invested in mini-bonds is not protected by the Financial Services Compensation Scheme, which will compensate you with up to £85, 000 if your bank or building society goes bust.
