Gen.acc.8se.pf Discussion Threads

[par555] 05/10/2012 12:39

Skyship,

Thanks for the reminder on RECP. I have held some of these for some time but had ignored the potential recently. Took a few more today !

[skyship] 04/10/2012 13:19

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

# AV.A 8.75% - 112.5p-115.0p – Yld on the offer share price = 7.61%
# AV.B 8.375% - 110.0p-112.5p – Yld on the offer share price = 7.44%
# GACA 8.875% - 110.0p-113.0p – Yld on the offer share price = 7.85%
# GACB 7.875% - 101.0-104.0p – Yld on the offer share price = 7.57%

NOTES:

# Once again GACA is the best value of the 4 prefs. The other three are all pretty well in line.

# AV.A & GACA are the next to go XD again – early Nov. – paydate: 1st Jan'13.

# Bearing in mind the 10% with-holding tax - none of these now look cheap. If you don't hold RECP, buy a few of those for the 8.16% yield with NO with-holding tax, no stamp duty on purchase and a quarterly 2% dividend. Also dated for redemption at par in Sept'17, so underwritten against interest rate rises and a couple of points capital gain thrown in. So at 98p the GRY = 8.41%

[mac15] 04/10/2012 11:52

Never understood the huge gap between Av.a and Gaca but took advantage of it. These are progressing up nicely.

[skyship] 18/6/2012 13:03

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

# AV.A 8.75% - 105.0p-106.2p – Yld on the offer share price = 8.24%
# AV.B 8.375% - 102.0p-103.0p – Yld on the offer share price = 8.13%
# GACA 8.875% - 100.0p-104.0p – Yld on the offer share price = 8.53%
# GACB 7.875% - 95.5p-100.0p – Yld on the offer share price = 7.87%

NOTES:

Once again GACA is the best value of the 4 prefs. The other three are all pretty well in line.

AV.B & GACB are the next to go XD again – on 1st Aug'12 – paydate: 31st Sept'12.

[monty panesar] 17/2/2012 19:33

LLPC worth a look now lloyds now paying prefs. Yield of 10%

[skyship] 14/1/2012 07:42

Delighted to be able to help!!

[mac15] 13/1/2012 17:47

Looks like your update did the trick Skyship!.

[skinny] 11/1/2012 17:03

The volume (on GACA) reflects that today.

[skyship] 11/1/2012 16:48

Interesting to see all the Aviva prefs moving better today. It seems slowly to be sinking in that with the global (especially European) deleveraging, we will be seeing far lower investment returns for the next 5years, 10years, even 20years – two decades of poor returns according to one well-respected fund manager on Bloomberg this morning.

In such circumstances the attractions of secure high-yielding stocks are gaining traction. It is corporates rather than governments who have the money nowadays, so when you can buy corporate bonds or preference shares yielding more than 8%, adjust your portfolio weightings and stock up.

GACA remains the best value Aviva pref. They are moving better; but seem to be headed back to at least the 7.5% yield level; so note these target prices:

Sp.........Net Yield........Gross Yield
105p..........8.45%............9.39%
106p..........8.37%............9.30%
107p..........8.29%............9.22%
108p..........8.22%............9.13%
109p..........8.14%............9.05%
110p..........8.07%............8.96%
111p..........8.00%............8.88%
112p..........7.92%............8.80%
113p..........7.85%............8.73%
114p..........7.79%............8.65%
115p..........7.72%............8.57%
118p..........7.52%............8.36%
120p..........7.40%............8.22%

[skyship] 09/1/2012 08:08

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

# AV.A 8.75% - 109.5p-111.0p – Yld on the offer share price = 7.88%
# AV.B 8.375% - 105.00p-107.5p – Yld on the offer share price = 7.79%
# GACA 8.875% - 101.5p-103.5p – Yld on the offer share price = 8.57%
# GACB 7.875% - 97.75p-99.5p – Yld on the offer share price = 7.91%

NOTES:

A couple of months further on and, surprise surprise, once again GACA is the best value of the 4 prefs. The other three are all pretty well in line.

AV.B & GACB are the next to go XD again – on 1st Feb'12 – paydate: 31st Mar'12.

NB: The yields as shown are NET yields, ie that 8.57% on GACA is 9.52% GROSS.

[bisiboy] 07/1/2012 17:18

added some gaca last week they would seam a reasonable income buy

[rock star] 22/11/2011 20:18

BTW ELLA is another good pref- in my mind slightly safer than Aviva

[rock star] 10/11/2011 19:49

Thanks for the onfo you post. Great for the pension

[skyship] 06/11/2011 15:34

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

# AV.A 8.75% - 108.5p-111.5p – Yld on the offer share price = 7.85%
# AV.B 8.375% - 104.75p-106.75p – Yld on the offer share price = 7.85%
# GACA 8.875% - 104.00p-107.5p – Yld on the offer share price = 8.26%
# GACB 7.875% - 94.0p-97.25p – Yld on the offer share price = 8.10%

NOTES:
AV.A & GACA both go XD on 9th November - paydate 1st Jan'12

A few months further on and here we are again - GACA is once again the best value of the 4 prefs. The other three are all now reasonably in line.

[envirovision] 02/11/2011 08:16

PRESS RELEASE: Fitch Affirms and Withdraws Aviva's Ratings
The following is a press release from Fitch Ratings:

Fitch Ratings-London-01 November 2011: Fitch Ratings has affirmed Aviva Plc's (Aviva) Long-term Issuer Default Rating (IDR) at 'A' with a Stable Outlook and simultaneously withdrawn the rating. Fitch has also affirmed all Aviva's operating companies' Long-term Insurer Financial Strength (IFS) ratings at 'AA-' with a Stable Outlook and withdrawn the ratings.

Fitch has decided to discontinue the ratings, which are uncompensated.

Fitch has affirmed and simultaneously withdrawn the following ratings:

Aviva Plc:

- --Long-term IDR 'A' Stable Outlook

- --Senior unsecured debt (guaranteed by Aviva International Insurance Ltd) at 'A'

- --USD300m Callable Subordinated Notes (ISIN: XS0279569395) at 'BBB+'

- --All other subordinated debt at 'BBB'

Aviva International Insurance Ltd:

- --Long-term IDR 'A+' Stable Outlook

- --Long-term IFS 'AA-' Stable Outlook

[skyship] 13/10/2011 08:24

HOLTS - re exchange back in Sept, I agree the sell-off was likely down to:

a. Sentiment
b. A one off forced seller, or capitulator

Good to see that the 100p level held.

I didn't sell and I didn't add; but I did move back into FPEZ with some of my SIPP cash. 6% is hardly exciting, but attractive as a 3yr secure lockaway in troubled times.

[soi] 07/10/2011 08:47

Hi Added some at 103.5.
Nice yield, that`ll do.

[envirovision] 30/9/2011 20:43

--Insurers monitoring events surrounding euro-zone crisis

--Exposure to EU sovereign debt and banks has been cut over past year

--US money-market funds further cut exposure to European banks



By Vladimir Guevarra

Of DOW JONES NEWSWIRES



LONDON (Dow Jones)--Some of the U.K.'s biggest insurers are keeping a wary eye on the euro zone sovereign debt crisis, with some already trimming investment in government debt, shares and bank deposits in "peripheral" EU countries.

Their worries stem from growing signs that the global economy is faltering and that EU politicians are at loggerheads over the scope and cost of another bailout for Greece.

The euro zone purchasing managers index slid to below 50 in September, according to data provider Markit on Thursday, signalling a contraction of business activity for the first time in more than two years.

A spokeswoman for Aviva PLC (AV.LN) said the insurer has cut its exposure to corporate and government debt in Greece, Spain, Portugal and Ireland to GBP500 million in June from GBP700 million in December.

She said this exposure is "limited" compared with total shareholder assets of GBP113 billion.

[holts] 30/9/2011 20:21

Skyship , apologies for delay in reply , you asked 'Anyone got any views as to the reason for today's sudden sell-off in the Aviva prefs? '

My reply was to suggest that sentiment was the general reason , all financial prefs had taken a hit , including those with robust terms such as NWBD , plus of course the Greek statement re haircuts .

I am not sure I agree that AV isn't or shouldn't be classed as a financial , its certainly moving along with that class to one degree or another .

[mac15] 27/9/2011 14:39

Bought some in the end at 102.5. I do remember getting some in the low 80s as per Skyship's graph and selling around 115. Having just bought at 106 and 102 I hope the graph is not going to repeat!

[skyship] 27/9/2011 13:04

I don't see why charts should work with FI stocks; but interesting nevertheless just to see where GACA traded post Lehmans and at the lows of Mar'09.

[skyship] 27/9/2011 12:44

Actually - Envirovision is entirely correct in his logic - there is a notional accrual based upon the effluxion of time.