Lend money to these big brands and earn 6.4pc

Why invest in tiny, risky ventures when corporate bonds offer high yields and comparative security, asks Richard Dyson

Corporate bonds issued by large, arguably stable businesses are currently yielding 5pc or 6pc – even as returns on other assets continue to plunge.

Investors’ anxiety in the weeks ahead of Thursday’s vote saw increased buying of “safe haven” government bonds, forcing up their prices and resulting in shrinking yields.

But at the same time the market turned its back on riskier corporate bonds, with the opposite result: prices drifted lower and the bonds’ promised annual income – or “coupon” – became more attractive relative to the price. Yields rose.

It is now possible to buy, in tranches of as little as £5,000, bonds issued by businesses such Tesco or Ladbrokes that yield as much as 6pc.

These bonds, even when they are issued by such household-name businesses, are little known and rarely used by DIY investors.

“It’s a shame they have not caught on more,” said Oliver Butt of City & Continental, a firm established in 1999 to advise wealthy clients about bond holdings.

These bonds do expose savers’ capital to risk. The issuing companies could default or the bonds could fall in price at a time when investors need to sell. But they are safer than many other high-profile investments, including widely advertised “minibonds” issued by small, new, unknown businesses where financial details are scant and where – because the bonds will not be tradable on the stock market – there are fewer regulatory safeguards.

By contrast, most companies that issue traded corporate bonds also have shares quoted on London’s main or

‘You’ve certainly got ample yield here. I wouldn’t turn up my nose at that’

Aim markets. This means they publish detailed financial information and are widely scrutinised by analysts and professional investors.

The easiest corporate bonds to buy in small tranches (such as £5,000, or even as little as £2,000) are those issued on the London Stock Exchange’s Orb market, which stands for “Order book for Retail Bonds”.

For a list of these bonds and daily price information go to the LSE’s website and search for “retail bonds”.

Even better information is obtainable from Fixedincomeinvestor. co.uk – go to the section titled “born on Orb”. As of late this week, Tesco’s 5.5pc