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Permanent Interest Bearing Shares are irredeemable shares issued by Building Societies, which are traded on the London Stock Exchange and carry a fixed interest coupon which has a higher interest rate than ordinary Building Society 'share' accounts.

However, PIBS provide less security. Interest is also only payable after interest has been paid on ordinary accounts and the payment due would still be subject to further restrictions. Ordinary account holders are treated as priority.

A PIB may include imbedded features such as issuer call options and variable coupons. To help you better understand this sector, you'll be able to read a copy of the original prospectus documents within the PIBS section of our Fixed Income Research microsite: just choose your PIB and open the pdf shown at the bottom of the page.