Balfour B.10tqp Discussion Threads

[skinny] 29/6/2020 11:05

One that bought them for less :-)

[skyship] 29/6/2020 11:02

What idiot broker sells @ 98.80p today when they redeem @ 100p on Wednesday!!!

[skyship] 26/6/2020 17:19

YS - yes, Inland Homes viewed as higher risk in view of its sector; however substantially asset covered and the sector targeted for support by the government through the easing of planning restrictions.

[yieldsearch] 26/6/2020 16:49

Skyship: thanks for this, arent you concerned with INLZ? Materially greater GRY than others? so either mispriced or much higher risk?

[cc2014] 26/6/2020 12:47

The challenge is that this was a nice issue which wasn't a bank, insurer, prop co. or financial services so it allowed me to spread some risk, so it's a real pity BBYB is being redeemed.

I am sitting on my hands until the latter part of the year until I see more clarity over the goverments intentions. I'm concerned that in order to improve government finances the goverment will seek to move cost onto the private sector.. which means shareholders and bondholders.


I guess the first test of this will be the insurers business interuption test case which we will get the ruling on in mid July. Even if the insurers lose they will appeal and appeal and appeal but in the meantime they will be told to rebuild capital buffers.

Then we have the banks... The bad debts on mortage holidays, credit cars and car loans aren't going to be paid by the government...



Hopefully we will see some new issues in the latter part of the year.

[skyship] 26/6/2020 11:36

what to do with the redemption?...

Quite. Good question and no obvious answer.

Personally ~I would recommend a small portfolio of Zero Dividend Prefs (ZDPs).

I hold:

# Acorn (AIFZ) @ 156p. Redeem 28/02/22 @ 167.20. GRY = 4.23%
# NB Priv. Equity (NBPP) @ 115p. Redeem 30/09/22 @ 126.74p. GRY = 4.39%
# NB Priv. Equity (NBPS) @ 105.90p. Redeem 30/10/24 @ 130.63p. GRY = 4.95%
# Inland Homes (INLZ) @ 153p. Redeem 10/04/24 @ 201.40p. GRY = 7.52%

Blended yield = 5.27%

I also hold the Regional Props 4.5% bond (RGL). On offer c92.5p. Redeem 06/08/24. GRY c6.3%.

I would welcome others' suggestions.

[cwa1] 26/6/2020 11:07

I wonder whose broker will be the slowest to credit redemptions? I'm backing iWeb to be there or thereabouts. Possibly an honourable mention for Barclays?

[yieldsearch] 26/6/2020 11:04

what to do with the redemption?...

[skinny] 26/6/2020 10:49

Bye, bye old friend - bought @101.75 in 2014, sold @105.98 in 2019.

[boystown] 26/6/2020 09:43

These are redeemed on Tuesday right? So never having held a pref til redemption - do our accounts just get credited?

[badtime] 01/6/2020 23:57

Surprised to see a couple of buys today above the 100p repayment

[stemis] 01/6/2020 09:58

In a way it's a bit of a shame. I wouldn't have minded continuing to receive the 10.75% dividend...

[cwa1] 01/6/2020 07:44

In today's Trading Update:-

n line with the current environment, the Board has prudently decided to cancel the final dividend for 2019. However, Balfour Beatty will shortly be giving notice to preference shareholders of its intention to redeem in full the GBP112 million of preference shares that fall due on 1 July 2020.

[skyship] 28/5/2020 08:40

Perhaps someone still thinking there will be a roll-over option to the compulsory redemption.

[rik shaw] 28/5/2020 08:33

It did for 10 mins or so but now at around 99p. I was surprised to see it above 100p as well- looked too good to be true!

[jaf111] 28/5/2020 08:21

surprised to see this trading above 100p now that its gone xd today???
surely sensible to sell today?

[eeza] 19/5/2020 13:36

Yes, correct 28 May.

[eeza] 19/5/2020 13:05

Thurs 21 May.

[deadly] 19/5/2020 11:56

When is it going XD?

[return_of_the_apeman] 17/4/2020 16:40

Thanks SKYSHIP, probably the easiest money I will make this year

[spittingbarrel] 15/4/2020 15:20

Sky - Thanks for pointing it out, I've added to my already ridiculously overweight position.

[skyship] 15/4/2020 15:06

Another good opportunity today.

Someone in need of cash today dumped 100k @ 98p. This when they redeem at effectively 105.375p in just 77days time - 01/07/2020.

Yes, BUY BBYB in a tax-free wrapper @ 100.6p (101.14p inc costs) and you make 4.18% in 2.5months, ie a GRY of 21%pa.

I've just added to my position; whilst thanking the seller & the MM for their generosity!

[skyship] 27/3/2020 11:42

Incidentally, Inland homes ZDPs are still down at 137p from 162p. At that level they provide a 9.84% gross redemption yield to 201.40p on 10/04/2024.