GILTS, BONDS & PIBS
Permanent interest-bearing securities (Pibs)
Pibs, which are also known as perpetual subordinated bonds, have been issued by many UK building societies and are a class of subordinated debt. Coupons are fixed and the bonds have no fixed redemption date. This allows investors to benefit from a long stream of income flows, but leaves them reliant on the market price when they wish to liquidate their investments.
Pibs are also subordinated debt, ranking lower than deposits and senior bonds in the event of the issuer entering liquidation. Many Pibs also have calls, an option that allows the issuer to repurchase the bond at par. Click on the security name to see more data and price charts.