Retail bond closes two weeks early due to strong demand Richard Hunter, at Hargreaves Lansdown said: "Although the current LSE bond is the first retail bond to be issued with a coupon below 5pc, demand from investors has started strongly. Investors seem to be attracted by the quality of the LSE name whilst still getting a return significantly above that found in cash deposits. The majority of recent issues having closed early. With interest rates so low, investors looking for yield are turning to these types of investments for income. As with any investment, it is important for investors to understand what they are investing in and the risks include the capital value of this bond can fall in value if cashed in prior to maturity. Analysts from Investec said that given that the LSE has two outstanding wholesale bond, it is quite possible that there will be demand from institutional investors for the longer dated higher yielding retail bond. "Institutional demand could swell the size of the issue," it said. This could lead to higher volatility in the secondary market if institutional investors actively trade the deal in sizes atypical of the retail market. Unlike cash bond deposits, retail bonds are not covered by the Financial Services Compensation Scheme. The value of your investment can go down as well as up, although investors who bought at launch should have their initial deposit refunded in full.