Permanent interest bearing share (PIBS)

Permanent interest bearing share (PIBS),

Definition of Permanent interest bearing share (PIBS):

1. Non-refundable fixed income guarantee (usually 10 to 13%) is issued by a major British construction company and is listed on the London Stock Exchange (LSE). PIBS offers semi-annual paid-up securities in fixed income (securities). Net current price (market price) moves in the opposite direction to the market interest rate: if the interest rate rises, the PIBS loses the price and vice versa. They are less liquid than gold reserves because they are non-refundable and can only be exchanged in search of a buyer.