Do not gamble with Home Equity!  Do not trust the banks.  Your savings will be shredded and lives will be changed forever.   

Our best advice: learn all of the risks of any financial product six months before you enter the war zone.  The only one who can fully inform you of the RISKS is YOU.  We are now globally back to 1950's BUYER BEWARE.  No problem there, its just that to be fair, consumers need to fully understand the first RISK is trusting the commissioned seller and in particular the Manufacturer of the risky financial product.  Remember, you will only be told the benefits to you in glowing colours.  The "marketing material is designed to make you fear life without the product they are selling.  False and Misleading information by the bucket load is a key indicator of a full blow SCAM.   No-one should ever trust a Bank or Lender...the creators of these SCAMs.  The Too Big to Fail Banks are riddled with dishonesty....our members know that now.   The most prolific RISK is in actual fact a given....LOSE YOUR HOME and lose your financial security you saved and worked so hard for all those precious years.    These business are akin to rigging the horse race - theyw in big bucks and you lose yours.  Average loss $600,000 taken from equity in your home.   This email address is being protected from spambots. You need JavaScript enabled to view it.

Kames’ Roberts: New bond instruments could be wiped out if markets fall

09 May 2014

Kames Capital’s head of fixed income David Roberts has warned new instruments within the fixed income market could be wiped out - losing holders their entire investment - if markets turn south.

The bond expert - one of the most experienced fixed income investors in the country who has managed funds for the last decade - questioned valuations on some of the hybrid debt in the market and said any unforeseen event could cause many instruments to collapse.

"Valuations across most markets seem expensive and closely resemble the 2008/9 environment. From this perspective, the market appears to be meandering along like the crisis never happened and at current levels, if there is an unknown event prices could collapse expeditiously," he said.

He is particularly concerned about new instruments coming to market, such as hybrid securities, additional tier-one bank debt and contingent capital notes.  These have been particularly popular with bond investors in recent months because of their higher than average yields, but many managers have now started to reduce allocations to these products as yields begin to fall and they no longer offer sufficient reward for risk.

Roberts said: "In some cases these instruments act much like equities, performing well under strong market conditions and entailing significant downside risk when it is not. Under 2008/9 conditions, many of these instruments would be written-off with little probability of recovering any money."

He is concerned investors are now behaving in a way reminiscent of 2008, when perceived risk levels dropped and managers began adding risk to their portfolios in an effort to pick up extra yield.


"Back in 2008 we appeared to be carrying very little risk and we looked for greater exposure through high yield bonds and more BBB- rated financials.  "In the current market, risk systems are once again being relied on and are encouraging fund managers to increase risk. Although a lot has been learnt from the financial crisis, people are looking for new ways to make old mistakes."