For the past few years, big businesses have gotten used to the reality that that banks - saturated by excess liquidity - won't take their millions - so they've had to find other ways to invest it. Social Security did just that when it bought preference shares in BEL three years ago.
Today, it closed off that purchase for a handsome return - the kind that it surely couldn't have gotten at the bank. SSB purchased $10 million dollars in preference shares along with $5 million in BEL debentures, and earned $3.1 million dollars in return on its investment, amounting to an average of 6.6% annual interest.
It was also well worth it for BEL, which got funding to meet its financial commitments - cheaper than if it had borrowed from the bank.
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