Nevertheless immensely significant and reassuring from a. broad investment standpoint
that amid the crumbling of speculative markets gilt-edged and other fixed interest securities, have not batted an eyelid. Indeed, it seems that the public demand for sound stocks in this category has actually increased in recent weeks doubtless because, accumulated funds, of which some at least would have found their way into equity. Shares in -a- more -happy - environment, have been diverted towards safety-first channels. Buyers of fixed interest securities at -current prices are; is effect, backing their view, first, that World peace will sinnehoW be preserved (or, if it is not, than nothing will matter much in Throgmorton Street), and:, second, that even though interest rates may harden, the movement away from cheap money is going to be very slow.
Both assumptions are, I think, justifiable, and I see no ]reason why investors _seeking income and reasonable safety. Should not continue to explore the prior charge market. Here
a group of industrial debentures all of which are moderately priced in relation to the security offered' : • - No. of times Interest Current Yield. Covered. Price. %
Australian Estates 41 per cent. First s. 4.
Deb. 3 96 4 14 0
Borax Consolidated 41 per cent.
' t Second Deb. 31 1051 4 5 6 Fine Spinners 4 per cent. First Debs. 21 864 4 13 6 Consett Iron 4/ per cent. Debs. .. 8 104 4 1 9 Pease & Partners 4 per cent.... 12 941 4 5 0
The average return on an investment spread evenly over these five stocks would be £4 8s. per cent.
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