Bp 8%pf Discussion Threads

[neilyb675] 19/2/2024 15:15

136.00 - 143.00 (GBX) at 08:00:04
on Market (LSE)

[neilyb675] 15/1/2024 10:30

133.00 - 138.00 (GBX) at 07:44:46
on Market (LSE)

[ch1ck] 29/10/2013 08:45

Dividend raised today I have been buying these for a couple of days now. This should start to move now.

[hosede] 08/7/2013 09:03

Price now falling, but still big spread - watching - looking to add

[ptolemy] 12/10/2010 15:12

Something got us moving today, but no trades posted so far.

[fxbond] 15/8/2010 18:42

To be honest I only have 600 BP.B around 126p and at same time bought another 600 LLPE at 59p. So that is my feeling about them ! Pleased to buy a few at that price -would love to buy some more at £1. ! You have to be a bit broadminded about what might happen in the future. Ptolemy you raise good points about the spread but this only reflect uncertainty -there were big spreads on corporate bonds last year but they have narrowed. At some time the spreads on the B series will narrow at higher or lower price for one reason or the opposite -thats the amount of uncertainty. So my philosophy is spread widely don't get too involved and wait ! I would think institutional holding provides greater stability -less volatility, being behind the A's in priority not much problem. There is capital downside risk on any pref or bond if the economic recovery stays on track further out. All we can try to do in uncertainty is balance risks in portfolios as best we can to protect from downside risks and position in a way that counterbalances risks while deriving income and rising income potentiality I would suggest. Prefs are not an alternative to the ordinary shares they are a diversification in a different structure but equally the diversification in the same company provides additional security of income flow if not necessarily always maximising it-and after all it is very unlikely that this company will default.

[ptolemy] 09/8/2010 13:29

Appears there's a seller around; today you can buy 50k for 131.25p.

The attraction is as an income diversifier. I would be happy with 6% income and 4% capital gain for each of the next 5 years, but I can't see it jumping. Why?

Well, as enviro says there are just so many alternative A-rated or better stocks yielding >6%. With less uncertainty.

Meanwhile most punters expect BP to return to paying a divi next year (and it must be a priority, given the number of funds that hold it for income)and so buyers/holders of the ordinaries expect a 6% divi income ordinary and a capital gain. They rationalise it by saying, "how is that any more risky or less attractive than the prefs?"

If the picture for BP clean-up costs doesn't clear, or if the ordinary divi looks less certain, or deflation is recognised more widely - these are catalysts for the prefs.

[envirovision] 09/8/2010 10:54

I agree volume based it looks set for a bounce, it just needs to see some volume it cant go overlooked for much longer imo what with the plugging of the hole and asset sales, i guess that will happen when BP gets a decent ratings upgrade.

I have 10,000 myself and it provides an interesting income diversification with some upside.

What FXBond says about interest rate cycle risk is true. Therfore I think in the long run many of the capital notes of Lloyds offer better value and longer term upside in the cycle. Take a look at LB2I for example yeilding almost 11.5% at the minute for example, but most certainly not for much longer.

For those prepared to take on a bit more risk look at RUSP yeilding the same or QWIL yeilding 13.5%.

[simon gordon] 09/8/2010 10:38

I've got 20,000 but am put off buying more as the historical liquidity has been dire:

The chart is based on Quarterly volume:




It does look good for a run up to 160p.

Does anyone think volume will be better in the future due to the hunt for yield?

[ptolemy] 09/8/2010 10:32

fxbond,
for four minor reasons I prefer the 8%:

- they are paid before the 9% in the creditor order
- the issue of 8% is 50% greater than the 9%, so more liquidity
- the spread is much smaller on the 8%
- the 9% is largely held by institutions, implying less liquidity

[fxbond] 07/8/2010 20:30

The 9% B series are better protection against inflation and could rise further than the A series albeit that you pay a premium for the B's. Whilst there may be some further upside in the ordinary shares this detracts from the prefs but we cannot be sure how much upside is in the pipeline -the legal damage is not fully known and the level of future ordinary dividends is unknown. Of course when the interest rate cycle turns -it would be cynical to say if -but when is of the essence- then the higher yield in the 9% is added protection but they have further to fall to par. Will gilt yields ever get up to 6%? If they did the yield on these would be amazing. Maybe good to keep tuck them away -sometime ahead they will be usefully added to meanwhile they are paying a divi last one paid 23rd July.

[envirovision] 23/7/2010 19:40

I see fitch upgraded bp today based on asset sales.

Interesting outlook in IC this week:

assuming 5% should see the price go back to £1.60.

In spite of the rather alarming inflation figures that have recently come through - RPI at 5.4 per cent - low headline interest rates are here to stay for some time. With this in mind, gilt yields of around 3 per cent may be as good as it gets for the next few years, which means at current prices there should be more capital upside from holding 10-year UK gilts. Also, based on this assumption, investment-grade corporate bonds will offer yields of perhaps 4.5 per cent to 5.5 per cent. Hopefully, there will be a few bargains to be had with higher yields than this, but 5 per cent looks to be the aiming point for a portfolio of decent quality corporate bonds.

Bond of the week is supplied by fixedincomeinvestor.co.uk and is subject to their disclaimer.

[envirovision] 13/7/2010 13:10

I supose at 126.25 there is a good and fairly safe 10% upside including spread and dealing costs in the medium term.

[hosede] 12/7/2010 10:53

Enviro
Yes beneath the mid price. Just bought another 9k at 126.75. BP is up another 25p today, but still these aren't moving - it's only a matter of time before others catch on.

[envirovision] 09/7/2010 11:25

sorry missed that 126.25 level is not so bad.

[gramsci] 09/7/2010 11:18

eurovision - if you really want it press your broker; I just bought 5000 also @ 126.25, well within the spread.

[envirovision] 09/7/2010 10:53

hosede theres a 10p spread, that more or less puts the knockers on buying this unless you plan to never sell them ever.

[hosede] 09/7/2010 10:47

bought 10,000 of these at 126.25 today. BP bonds and shares have made a significant comeback in the last 10 days or so, but these prefs have not moved at all

[pillion] 27/7/2009 17:29

steve
Some info here

[stevemarkus] 14/11/2008 09:58

Can I ask what resource you use to monitor preference shares ? Can't find them on Yahoo or Digital Look for example.

Cheers,
Steve.

[billy whizz] 13/11/2008 16:16

SORRY RETURN IS 8.11%

Must be worth it with rates likely to fall to 2.5%-3.0% or even lower,
only thing with these is that if by some chance the miss div it is not cumulitive and is lost but with BP ITS CUMULATIVE AND IF MISSED IT WILL BE PAID AT LATER DATE.

[badtime] 10/8/2008 11:52

nice drop on friday

[washbrook] 09/8/2008 17:29

Dividend dates31/7 and 31/1