Retail bonds: An interesting question

With individual investors facing record-low interest rates, retail bonds are proving increasingly popular. But, as always, there are risks. David Harris reports

The retail bond has become a popular way for property companies to raise money. The bonds, which raise cash from the public rather than the more usual route of institutions, have been sold successfully by several property firms, including Helical Bar, St Modwen, CLS Holdings and Unite, the student accommodation specialist.

So why has there been such a flurry of enthusiasm for retail bonds? Part of the reason is obvious: the banks' caution about lending has forced those