Gen.acc.8se.pf Discussion Threads

[mac15] 27/9/2011 11:51

What is strange?!. Barc S were quoting 100.50 sell, 101.80 buy this morning. To "buy" is now 104.25. MMs act in mysterious ways.

[grahamburn] 27/9/2011 11:50

In spite of your attempted explanation (by comparing apples with pears), the yield on this particular share ("instrument") can only be calculated based on the price paid. One cannot take into account accrued interest. Indeed, extending the discussion further, to calculate the TRUE interest rate on the purchase, one should actually allow for the costs of buying (ie stamp duty ad commissions), but let's not go there. We'll just have to agree to differ and close the exchange of views down.

[envirovision] 27/9/2011 11:27

Well I'm afraid I completely disagree with you both because I believe its critical to take into account what's already accrued in the price when buying and it should be one of the first considerations when comparing to other like income investments.

[skinny] 27/9/2011 11:07

But it isn't and he didn't :-)

[envirovision] 27/9/2011 10:46

Yes your right the accrued is inbuilt so trades dirty and price drops come ex dividend.

However if it were say a bond trading clean, he would have paid 98.47p for an instrument quoted at 8.875% at par. On top he would have had to pay accrued of 3.33p.

So in other words as far as he was concerned he would have been buying yield circa 9% for his money at time of purchase, if you follow.

[grahamburn] 27/9/2011 10:27

Don't quite follow your maths or logic, envirovision, as price will drop by a similar amount on ex-div date. In reality, SKYSHIP has still paid 101.8, even though he gets a 3.33p rebate, because ex-div, he's "lost" 3.33p of his capital.

[envirovision] 27/9/2011 10:12

Here ex divi on 9/11 meaning there's already 3.33p accrued. So paying 101.8 is like paying 98.47.

So in other words buying today for the long term, one ought to think of it at a forward yield of 9%, yea ?

[skyship] 27/9/2011 08:40

Holts - the 50% Greek debt write-offs are good news - not bad. Also there is no similarity between the banks and the insurers; other than the classification of "Financial"!

The apparent disconnect between these prefs and the rest of the corporate debt sector is not justified IMO. So topped up @ 101.8p for the 8.7% yield.

[holts] 23/9/2011 15:18

other than it is similar to nwbd , llpc/d etc , comments by greek finance minister as to 50 per cent haircuts .

[skyship] 23/9/2011 14:05

Anyone got any views as to the reason for today's sudden sell-off in the Aviva prefs?

[skinny] 14/9/2011 14:20

Just bought in here @106.

[skyship] 08/9/2011 18:33

Exactly - and 106.9p was an excellent price!

[mac15] 01/9/2011 15:44

Bought some at 106.9 to complement a fair holding of av. Mains are pretty volatile wheras these currently fairly quiet but with a good yield. Spread is better than when I last dealt in these. As usual Gaca a better price than Av.a. Not sure why but who cares!

[skyship] 16/8/2011 17:18

Current status of the 4 AVIVA prefs – all cumulative but irredeemable.

# AV.A 8.75% - 109.0p-111.5p – Yld on the offer share price = 7.85%
# AV.B 8.375% - 105.75p-109.75p – Yld on the offer share price = 7.63%
# GACA 8.875% - 104.25p-108.0p – Yld on the offer share price = 8.22%
# GACB 7.875% - 93.5p-97.25p – Yld on the offer share price = 8.10%

NOTES:
AV.A & GACA will go XD in November
AV.B & GACB both went XD this month

A few months further on and here we are again - GACA is once again the best value of the 4 prefs. Having just gone XD AV.B is quite absurdly expensive and should be sold – a good time to switch into GACA regardless of the costs involved!

[skyship] 10/8/2011 08:26

Started buying back in here. 5k @ 108p yesterday & another 5k @ 107.74p. Will watch for the next 10k...

If these were dated I would already be back in for full allocation - still, a secure 8.2% certainly has its attractions and buying on the dips has served me well in the past.

[ianbrewster] 01/8/2011 13:34

link to new thread

[jaws6] 01/8/2011 13:02

envirovision
please Can you put link for in header for GACA info , if you like it.Got this in ISA.
G luck.

[joe say] 01/8/2011 12:32

thanks envirovision

[envirovision] 01/8/2011 11:12

I have created this new thread since the old one contains an incorrect and miss leading header which claims the share pays 7.93% net. The gross yield of GACA is infact 9.86% whilst net yield is 8.875%. The 7.93 figure quoted in the old thread is total nonsense.

[envirovision] 01/8/2011 11:11

I have created a new GACA thread since this one contains an incorrect and miss leading header which claims the share pays 7.93% net.

The gross yield of GACA is infact 9.86% whilst net yield is 8.875%

[the other kevin] 11/7/2011 12:50

HL re-invested the divi for me today.

[eithin] 30/6/2011 14:52

1st. July....