Aviva 8 3/4% Pf Discussion Threads

[lord gnome] 03/1/2023 10:15

Yes, me too. Definitely not correct :-)) No doubt it will be corrected before too long.

[mister md] 03/1/2023 10:07

Anyone else received 2x dividend payments here today with interactive investor - not sure if it's correct ?

[skyship] 19/12/2022 09:13

Yields at offer prices:

# AV.A 8.75% @ 126.0p-130.0p = 6.73%
# AV.B 8.375% @ 119.35p-121.3p = 6.90%
# GACA 8.875% @ 121.3p-122.5p = 7.24%
# GACB 7.875% @ 111.0p-113.0p = 6.97%

The Aviva prefs continue their recovery, with only GACA now offering
a yield of above 7%. Expect further strength.

[skyship] 06/12/2022 15:23

Yields at offer prices:

# AV.A 8.75% @ 122.5p-124.95p = 7.00%
# AV.B 8.375% @ 118.0p-119.39p = 7.01%
# GACA 8.875% @ 119.0p-119.65p = 7.42%
# GACB 7.875% @ 108.5p-110.0p = 7.16%

AV.A & GACA just gone XD. As usual GACA looks to be best value.

With the weakness of the $ taking the sting out of global inflation; the UK interest rate peak of 6%-7% now looking more like 4%-5%.

Expect a continued recovery in all these prefs.

[yf23_1] 01/12/2022 19:18

Picked some of these up yesterday at 7.23% (taking account of divi).
Seems a no-brainer compared to cash interest accounts and inflation should pull back.

[skyship] 04/11/2022 11:15

Yields at offer prices:

# AV.A 8.75% @ 118.0p-119.0p = 7.35%
# AV.B 8.375% @ 110.0p-111.4p = 7.52%
# GACA 8.875% @ 110.15p-112.45p = 7.89%
# GACB 7.875% @ 101.1p-102.1p = 7.71%

AV.A & GACA next to go XD

Seems to have been an institutional tap in GACA; which are now anomalously cheap, especially as they have c4p of accrued dividend.

[hindsight] 03/11/2022 17:05

forgot to say the prices were offer minus accurred divi

[montyhedge] 03/11/2022 16:41

Thanks hindsight.

[hindsight] 03/11/2022 15:14

AV.A AV.B ELLA GACA GACB RSAB
8.750 8.375 8.625 8.875 7.875 7.375
115.7 110.1 123.2 109.4 100.6 97.4
7.57% 7.61% 7.00% 8.11% 7.82% 7.57%



LLPC LLPD NWBD STAB STAC BWSA BWRA
9.250 9.750 9.000 7.375 8.250 8.125 8.750
127.4 132.3 129.4 97.0 108.2 113.4 135.4
7.26% 7.37% 6.95% 7.60% 7.63% 7.17% 6.46%

[montyhedge] 03/11/2022 14:54

Ok thanks. Coming back into bonds so out of touch. Any other idea's boys.

[ramellous] 03/11/2022 14:51

Usually ex div first week of Dec. Payment date has been 31/12 the last few times

[simon gordon] 03/11/2022 14:50

Monty,

Think it goes XD 1/12 and pays 2/1.

[montyhedge] 03/11/2022 14:47

Guys lost touch a bit with pref's, when are the dividends paid for this one?

[cassini] 26/10/2022 17:45

Lord Gnome,

Thanks for the reply. I bought a modest amount of AV.A and GACA today for income.

As far as I can see, the US Fed cannot do a 'Volker' and put rates up into double figures or anywhere near to fight inflation as after all these years of ZIRP, the economy would implode, the housing market would collapse and government debt would become unsustainable.

They're going to have to 'blink' soon so here's hoping current yields here are a good deal.

[lord gnome] 26/10/2022 16:38

I think you have it in a nutshell, Cassini.

[cassini] 26/10/2022 15:30

I'm presuming the market is already factoring into the price an interest rate rise from the Fed (and therefore the BoE) in November?

I'm also presuming that AV.A, having no redemption date, behaves somewhat like a long duration bond so shouldn't react proportionately to changes in interest rate at the short duration end?

Maybe these are stupid questions but I've not really studied pref. shares before.

[lord gnome] 26/10/2022 15:00

I'm back in today, after buying GACA a few days ago. Locking in 7.5% yield with a good chance of capital appreciation once interest rates top out. The markets are going to be difficult to navigate if we really are heading into a serious economic downturn. A few prefs in the portfolio will offer guaranteed income and some protection if things get really ugly.

[2wild] 26/10/2022 13:43

Back in AV.A at 117.5p yielding 7.45% compared to 10-year UK gilt at 3.66%.

[hindsight] 14/10/2022 13:08

Brought a few, with matured zero proceeds, as gilts recovered a bit. Can buy for less than can sell at so aggressive seller here
Make the yield 7.79% with accurred divi

[alphorn] 14/10/2022 09:32

Thx. Will have a look over the weekend. Equities like LGen have crazy yields at present. Strange world!

[skyship] 14/10/2022 09:30

GACA always seem to be the best value for some reason...

[alphorn] 14/10/2022 09:28

Sky - you know this group best - which is your current pick?

[skyship] 13/10/2022 12:51

Yields at offer prices:

# AV.A 8.75% @ 114.5p-115.35p = 7.59%
# AV.B 8.375% @ 111.0p-112.02p = 7.48%
# GACA 8.875% @ 112.75p-113.99p = 7.79%
# GACB 7.875% @ 100.25p-101.38p = 7.77%

AV.A & GACA next to go XD

[skyship] 28/9/2022 15:55

Yields at offer prices:

# AV.A 8.75% @ 117.0p-118.2p = 7.40%
# AV.B 8.375% @ 113.0p-115.5p = 7.25%
# GACA 8.875% @ 115.2p-117.5p = 7.55%
# GACB 7.875% @ 104.0p-105.0p = 7.50%

AV.A & GACA next to go XD