Quick, Bradford & Bingley bonds are yielding more than 100 per cent. Oh, sorry, they’re not. They’re not yielding anything after a grim little statement from the company after the markets closed on Tuesday.
For the first time since the bank was nationalised, the board has decided to miss the next interest payments on B&B’s subordinated debt. Those who bought the 11.625 per cent perpetual bonds at 30, hoping for a return of almost 40 per cent a year on their investment, have lost two-thirds of their capital overnight.