The lowest offer price in the trades was 101p.
That gives a yield of 7.80% but there's maybe 2p of the next dividend in the price already. |
Seems to be a large seller here now, waiting to top up but it could be a long wait |
Yields at offer prices:
# AV.A 8.75% @ 121.0p-121.84p = 7.18% # AV.B 8.375% @ 113.0p-116.0p = 7.22% # GACA 8.875% @ 113.15p-114.25p = 7.77% # GACB 7.875% @ 103.7p-104.5p = 7.54%
Being hit by the continuing rise in interest rates. The GA prefs again the best value. |
Great spot, just moved my gacb holdings to gaca
Nice one |
Welcome :) Completely out the blue, was the first time I'd tried for a sell quote on it in ages, and had to check about 5x I wasn't buying by accident ;) |
Thanks for the heads up earlier Specto, allowed me to make my trade before the bid fell back to 106. |
Just sold GACB at 111 and put it into GACA At 1.2287. Will get the GACA divi in July for no loss (actually about £5 more) when taking into account the spread and stamp duty than holding out for the GACB div in October. A nice dividend arbitrage opportunity. |
We're not in the US. A valid argument to be made by the monetarists, but rates here are going higher for longer. |
Interest rates. There are alternative views of course:
Today's Bloomberg interview with JP Morgan's Bob Michele (CIO Asset Management). He predicts the Fed will start cutting rates in September, closing out the year in the 2.5%-3.0% range. |
Agree with you. Thx. |
That quote, mainly :)
But my top 3 in order of size are:
Cash SGLN CSH2
Expecting rates to go higher for longer, & past few months have only confirmed that. GACB/A aren't bad places to hide, but I think the gap with the risk-free may need to go higher. |
What pastures green have attracted you away from GACB if I may ask? |
Wouldn't usually post this sort of thing, but just got 110.99 to sell 100k GACB - on a 106/111 market quote. 0.01p below the offer.
Can see they're only doing buys 1p over, but strewth. Think I'll let ADVFN off for marking that one down wrong. |
LDI caused pension funds to scramble for liquidity & caused the first tank; is bank liquidity causing the second? Didn't spot anything in AV's results this time to suggest any reason to worry (but as ever with insurer's results, haven't read it all). |
GACA/B a bit more tradeable than others though as they seem to have a wider trading range since the Truss era.
I usually hold two tranches of any Pref. I buy. Then I trade one lot but retain the other for income. What I like about the GAccident prefs. is the tight spread- always well inside the prices shown. |
Yields at offer prices:
# AV.A 8.75% @ 127.8p-128.5p = 6.81% # AV.B 8.375% @ 120.4p-121.4p = 6.90% # GACA 8.875% @ 122.5p-124.5p = 7.13% # GACB 7.875% @ 108.0p-109.0p = 7.22%
As we all know, prefs are equity; but they never moved like equity. Nowadays, prefs are no longer a BUY & HOLD; they are a trade! |
Topped up today on the drop @ 1.08 having previously bought @ 1.165. |
Bought as per my post yesterday |
Order in and awaiting 14:00 auction.
edit: Filled at 117. |
bought a few at 116.37... |
GACB going xd 2/3/23. May have a few today/tomorrow. |
That spread is a lot closer than ADVFN are quoting ...what they mark as sales is actually the purchase price ..exdiv this coming Thursday |
Yields at offer prices:
# AV.A 8.75% @ 136.0p-140.25p = 6.24% # AV.B 8.375% @ 126.0p-130.8p = 6.40% # GACA 8.875% @ 130.1p-130.95p = 6.78% # GACB 7.875% @ 115.0p-117.4p = 6.71%
With AV.B & GACB the next to go XD, seems to me that AV.A are over-priced; and the best value has to be GACB. |
Yields at offer prices:
# AV.A 8.75% @ 129.0p-134.0p = 6.53% # AV.B 8.375% @ 123.3p-125.1p = 6.69% # GACA 8.875% @ 127.2p-127.7p = 6.95% # GACB 7.875% @ 116.4p-117.8p = 6.69%
The Aviva prefs have provided a great run recently; whilst GACA featured as a Tip of the Year in the IC. I would now expect a period of consolidation; and further progress may well depend upon further strength in the gilts sector. |
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. |