A non-redeemable security, usually issued by a building society, that pays interest at a rate fixed at issue. This is often 10–13.5%, giving investors a high yield for perpetuity. However, these shares carry the risks associated with fixed-interest securities, being the last to be paid out should an issuing building society go into liquidation. Moreover, the second-hand market for PIBS is small (approximately £800 million), making it difficult to find a buyer at any particular price.
Subjects: Financial Institutions and Services.