I've got a couple of questions about this investment vehicle.
http://www.cpsnotes.com/index.php
After skimming the prospectus (it's on the website), I don't plan to invest in it since there is no way for me to quantify the risk involved. Here are the questions that I have:
1. How bad exactly is this investment?
2. Can someone give me an idea of exactly how much risk is involved. The best thing would be if you could give me an example of another investment vehicle that has a similar amount of associated risk.
3. Is there a more common name by which this sort of thing goes by other than "Renewable Unsecured Subordinated Notes".
4. If anyone has had experience actually investing in this type of vehicle, I'd love to hear about it.
5. After looking over the prospectus, I think I understand how this works, but if someone could explain exactly how this investment vehicle works in simple terms, I'd appreciate it.
Thanks is advance for any replies to my questions.