Aviva 8 3/4% Pf Discussion Threads

[skyship] 04/8/2022 18:32

Yields at offer prices:

# AV.A 8.75% @ 135.0p-137.0p = 6.39%
# AV.B 8.375% @ 125.0p-127.5p = 6.57%
# GACA 8.875% @ 127.5p-129.5p = 6.85%
# GACB 7.875% @ 116.0p-118.25p = 6.66%

[hindsight] 01/8/2022 13:25

I managed to add some NWBD and STAB at recent lows, by luck too. Toke a while for them to react to the rise in the 10 year gilt. However I think this is not the end, inflation starting to become ingrained

[tag57] 01/8/2022 12:58

Thanks for your comments on this three Skyship. As a result I have managed (through luck) to time the bottom across several of these pref shares. Hopefully with BOE etc getting to the top of the rate hike cycle (maybe one more) we may see some more share price rebound.

[skyship] 01/8/2022 12:17

Yields at offer prices:

# AV.A 8.75% @ 125.0p-129.0p = 6.78%
# AV.B 8.375% @ 119.0p-120.9p = 6.93%
# GACA 8.875% @ 123.3p-125.0p = 7.10%
# GACB 7.875% @ 110.5p-114.0p = 6.91%

A good rally recently set in; and now only GACA providing a 7%+ yield

(wmb - thnx for your correction of 2nd July - immediately updated that morning)

[wmb194] 02/7/2022 08:51

Thanks for the update, Skyship. They're beginning to look interesting.

A small correction, though, if you don't mind. AV.A & GACA went ex-d on 01/06/22, paid 30/06 & 01/07 respectively.

The ex-d date for AV.B & GACB hasn't yet been announced but it should be 01/09/22.

[skyship] 02/7/2022 08:17

Yields at offer prices:

# AV.A 8.75% @ 122.0p-123.0p = 7.11%
# AV.B 8.375% @ 117.5p-121.0p = 6.92%
# GACA 8.875% @ 120.5p-121.0p = 7.33%
# GACB 7.875% @ 109.0p-110.0p = 7.16%

AV.A & GACA recently went XD...

[skyship] 21/6/2022 07:53

Agreed, ELLA always a good Aviva alternative at a slightly lower yield; perhaps a quarter point...so not a lot in it.

[tag57] 20/6/2022 23:58

Thanks v. Much CJ. Will take a look. 👍

[cousin jack] 20/6/2022 10:03

Tag:
Ecclesiastical Insurance Office plc (ELLA) 8.625% Non-Cumulative Irredeemable Pref. worth looking at. From memory their comments at the time of the Aviva debacle indicated their distaste for Aviva’s intentions and their support of the preference share concept. For that reason I’ve always regarded it as a safer holding than other prefs and hold it (alongside Av. B which,like Skyship, I think is now a safer hold as a result of their history). The BP prefs.also perhaps worth a look ?

[tag57] 19/6/2022 10:27

Gents, any other preference shares worth taking a look at? This currently looks like one of highest yielding pref shares given the current price.
TIA

[hindsight] 18/6/2022 11:29

Tate and Lyle are trying to buy in BD15 6.5% pref at par, only small issue, but probably isnt helping the pref sector

[skyship] 18/6/2022 11:14

Would certainly be sound economics for them to make a general tender at the 6% yield level for all 4 prefs. That would give acceptors a 17.5% mark-up from current levels.

Accept if you think that's a good offer; continue to hold if you don't.

Obviously sensible to accept; then if the listing continues - buy back in again!

[steve3sandal] 18/6/2022 08:16

Still got the handbrake on here. Wouldn’t it be very tempting for issuers to try to make a small premium to market price offer across the whole Pref sector with prices down here?

[tag57] 17/6/2022 11:48

Thanks Skyship. I have a decent time horizon on 5 years plus and think, looking at the chart at least this years interest rate increases look priced in. I am looking at income so happy to compound for a few years. Shame I missed the recent divi but such is life.

[skyship] 17/6/2022 11:34

Of course Aviva is a secure investment; but the prefs move in line with interest rates. If they move higher for longer, then for sure you can lose in capital what you gain in income; but over the medium/long term the current level looks fair game.


free stock charts from uk.advfn.com

[tag57] 17/6/2022 10:52

I haven’t looked at pref shares previously but what are the downsides to an irredeemable pref share paying out 7%? I would have thought Aviva is a relatively safe bet against liquidation / significant ongoing losses resulting in non-payment.

[skyship] 17/6/2022 10:11

Yields at offer prices:

# AV.A 8.75% @ 123.6p-124.6p = 7.02%
# AV.B 8.375% @ 119.7p-121.0p = 6.92%
# GACA 8.875% @ 122.5p-123.3p = 7.20%
# GACB 7.875% @ 115.0p-116.0p = 6.79%

Yields moving through the 7% level...

[skyship] 26/5/2022 14:26

Yields at offer prices:

# AV.A 8.75% @ 132.0p-133.2p = 6.57%
# AV.B 8.375% @ 126.5p-127.5p = 6.57%
# GACA 8.875% @ 132.0p-133.0p = 6.67%
# GACB 7.875% @ 118.0p-120.7p = 6.52%

So, 6.5%+ on all of them now...

AV.A & GACA both go XD on 1st June.

[yf23_1] 26/5/2022 08:06

Just divide the preference rate by the required rate
e.g 9% prefs yielding 7% = 9/7 (*100) = 128.57

[yf23_1] 25/5/2022 23:09

AV.B
128.8 would be 6.5% (+ 2.0 accrued div) = 130.8
124.0 would be 6.75% (+2.0 accrued div) = 126.0

AV.A
134.6 would be 6.5% (+4.3 accrued div) = 138.9

AV.A goes ex-div 1st June

[nerja] 25/5/2022 19:42

0 0 0
Big request skyship if you are about what prices for these prefs do they fall to get
6.5%
6.75%
7.00%
Forward is forarmed tia

[skyship] 14/2/2022 16:17

Yields at offer prices:

# AV.A 8.75% @ 142.0p-143.3p = 6.11%
# AV.B 8.375% @ 139.0p-139.6p = 6.00%
# GACA 8.875% @ 138.1p-139.2p = 6.38%
# GACB 7.875% @ 126.1p-126.7p = 6.22%

6%+ on all of them now...

[catsick] 09/2/2022 08:24

You can also buy this at the bidside I was quoted 1.445 offer yesterday