In reply to Postmanpat:
> However,if the company goes under you likely lose the lot.
Er, no - you are likely to recover (after some period of time...) a fraction of the capital (i.e. "x pence in the pound" depending on how badly the company "went under"). It's equities where you lose the whole lot when the company fails.
> There are some very attractively priced corporate bonds out there at the moment
For anything trading at less than (say) 80p in the pound, the market is most likely pricing in a large element of default risk...caveat emptor.
In reply to all:
I don't usually reply to these posts...but, if I can offer one thought, if you don't understand it, don't invest in it (or reply to the posts, it applies equally!)