Gen.acc.8se.pf Discussion Threads

[speedsgh] 08/3/2018 14:01

Brief comment on possible retirement of prefs in this FT article...

Aviva: All Black and blue -

[skyship] 08/3/2018 13:31

Jonwig reported this on the AV.B thread:

From AV.'s FY results:

In 2018, we have signalled our intention to reduce hybrid debt by £900 million. We are targeting more than £500 million in additional capital returns, incorporating liability management and returns to shareholders.

In this regard, we have the ability to cancel preference shares at par value through a reduction of capital, subject to shareholder vote and court approval. The preference shares carry high coupons that are not tax deductible and they will not count as regulatory capital from 2026. As we evaluate the alternatives, one of the things we are considering is how to balance the interests of ordinary and preferred shareholders. We
have committed €130 million to acquire Friends First in Ireland and have further appetite for bolt-on acquisitions in our major markets. Any unused M&A budget will be diverted to further reduce debt balances or fund additional returns.

I doubt pref. shareholders will vote for this, but I'm not well-versed in their Articles - maybe ord holders have a vote too?

[davebowler] 13/7/2016 16:06

ELLA looks good value.

[tiltonboy] 05/7/2016 22:04

No chance.

One trade I might close out is a position I took for clients in the M & G Global Macro Bond Fund. Best part of 10% up in a few weeks!

[skyship] 05/7/2016 21:49

Strewth - 132p!!! You've made a year's income in just a few days. I assume you'll be selling now...

[tiltonboy] 05/7/2016 16:34

Picked up loads of GACA at 132p last week!

[ganthorpe] 05/7/2016 16:32

The figures are helpful but the the September payers (AV.B & GACB ) will get their next dividend 3 months before the December payers which is worth about 2P per share. Which makes AV.A expensive and out of line with GACA at current prices..
DYOR

[skyship] 03/7/2016 16:51

The Aviva prefs have been a poor Market since Brexit; though rallied off the bottom on Friday. The average yield has dropped back to c6.2%:

# AV.A 8.75% - 137.0p-141.0p – Yld on the offer share price = 6.20%
# AV.B 8.375% - 132.0p-135.0p – Yld on the offer share price = 6.20%
# GACA 8.875% - 137.0p-139.0p – Yld on the offer share price = 6.38%
# GACB 7.875% - 123.0p-128.0p – Yld on the offer share price = 6.15%

[rock star] 01/7/2016 10:06

With interest rates heading to 0% these remain a bargain for those prepared to buy and hold.

[skyship] 09/4/2016 18:27

The pref market in general burst into life last week, especially Friday; and the Aviva prefs were no exception. Time to have a look across the piece where the the average yield has dropped back to 6.0%

# AV.A 8.75% - 145.0p-146.5p – Yld on the offer share price = 5.97%
# AV.B 8.375% - 136.0p-138.0p – Yld on the offer share price = 6.07%
# GACA 8.875% - 144.0p-146.5p – Yld on the offer share price = 6.06%
# GACB 7.875% - 128.5p-132.0p – Yld on the offer share price = 5.97%

E&OE

AV.A & GACA best buys as nearest to the next dividend.

[tiltonboy] 08/4/2016 16:52

They have been well bid for a few days with MM's reluctant to mark them up. A decent buyer turns up and they were forced to push them higher.

[jonwig] 08/4/2016 16:20

Thanks Skinny, but I don't see anything there which would be beneficial for prefs.
The notional 10% tax credit to be abolished ... OK, but it doesn't say that any paid dividends would be grossed-up by one-ninth before being taxable.

If this did happen, a £100 divi now would become £111.11 then potentially attract tax at 7.5% (say) leaving £102.78. That's no great event, but would it be for higher-rate (32.5% tax)? I don't think so.

The rise of about 4% in these prefs (and others) must be due to something else.

What have I missed?

[pyemckay] 08/4/2016 15:12

interest rates look to be going nowhere near the norm in next few years. I'm surprised the 6-7% yields havent been snapped up more readily in recent years and that the aviva prefs arent around the 160-170 mark. That said, I like the stability the prefs provide so capital appreciation is a bonus and have little bearing unless I was to be given a nice offer from aviva (180+).

[eeza] 08/4/2016 14:59

RUSP up to 135p....

[skyship] 08/4/2016 13:57

BBYB all the way up to 120p....

[tiltonboy] 08/4/2016 13:52

Market bidding mid prices for lines of most prefs.

[ganthorpe] 08/4/2016 09:51

Big rise (mark up?) today.No great volume.

Are there rumours about AVIVA buying them in?
I am not sure how they rank for Solvency 2 , but it would probably make sense to replace them with cheaper finance - even Ordinary shares - as long as it ranks as capital for Solvency tests.

[skyship] 31/8/2015 11:45

The Aviva prefs have been a better market over the past 6weeks, with the average yielding dropping back to 6.3%

# AV.A 8.75% - 138.0p-139.75p – Yld on the offer share price = 6.26%
# AV.B 8.375% - 131.0p-133.0p – Yld on the offer share price = 6.30%
# GACA 8.875% - 136.0p-137.85p – Yld on the offer share price = 6.44%
# GACB 7.875% - 126.0p-127.5p – Yld on the offer share price = 6.18%

GACB looks to be a sell; perhaps after they go XD this Thursday (3rd Sept'15).

[jaws6] 16/7/2015 13:51

gaca on move ?

[skyship] 14/7/2015 16:33

Having had such a dramatically good H1'15, with all rising c15%, those rises have been totally eroded in the space of a month. Yields now back up to c6.5%:

# AV.A 8.75% - 132.0p-134.5p – Yld on the offer share price = 6.51%
# AV.B 8.375% - 130.0p-131.4p – Yld on the offer share price = 6.37%
# GACA 8.875% - 132.0p-133.5p – Yld on the offer share price = 6.65%
# GACB 7.875% - 120.0p-122.6p – Yld on the offer share price = 6.42%

As so often in the past - GACA the best value.

[skyship] 01/7/2015 18:23

Exactly - well done Tilts - nice timing out; and at the moment look like nice timing back in. Congratulations...

[tiltonboy] 01/7/2015 16:26

Would have done better, but had to get clients out first. Got over 158 for some of those!

[my retirement fund] 01/7/2015 16:21

Good trading though Tilton. I got stuck into LLPC myself though, slightly better yield.

Managed to sell all my SAN right at the peak. Sadly swapped into RDSB a little to soon though.