Lloyds Grp 9.25 Discussion Threads

[rat attack] 23/5/2011 14:35

must be a few people who feel like that!! Anyway still holding 9.75% and ords!!

[eric gardener] 23/5/2011 14:14

wish I'd never bought these

[cwa1] 15/4/2011 16:47

Afternoon

Decided to take the plunge and join you lot with a few at 92.5p

Best of luck with it going forward.

[holts] 08/4/2011 13:16

no div until next year, as long as all goes to plan , it was end of may and nov.

[eric gardener] 08/4/2011 11:52

when divi paid and how much?

please .

[lord gnome] 03/4/2010 10:17

Hi solomon. There is now a composite thread for all LBG prefs. You'll find everyone on there. It made sense to have one thread for all of them rather than three different threads.

[solomon9] 02/4/2010 20:44

Lord Gnome - where have these guys gone, is there another blog?

[solomon9] 20/3/2010 00:13

Campaign or no the EU blocked payments of a discretionary nature for 2 years on account of the taxpayer assistance -hence Lloyds was not obliged to pay. Then came the ECN offer and the waterfall but Lloyds was not obliged to offer preferential terms to pref holders - hence why the bonds came first.

[old boy returns] 19/3/2010 00:18

Our campaign covering issues surrounding the exchange offer and non-payment of dividends is getting very interesting. If you a holder of an affected Lloyds preference share you can find a summary of the issues and join the campaign list at:

[supernumerary] 19/3/2010 00:05

No - the risk is a matter of fact not opinion, so whatever either of us thinks about it doesn't matter. The risk will remain until they restart paying dividends, which on current information is at least two years away.

The real scope for opinion is whether the risk is fairly priced or not, and on that we may (or may not) differ ;¬)

[nandan] 18/3/2010 23:49

Fair enough... Glass is half full on my side and half empty on your side ;-)

[supernumerary] 18/3/2010 22:34

'As it stands now, LLPC dividends are lost for two years'

Surely that should be 'As it stands now, LLPC dividends are lost for at least two years'?

[nandan] 18/3/2010 21:47

What zangdook meant is that if you add 2 years dividend(18.5p) to today's price 76.5, you get to 95p. It is like paying 95p for LLPC today and getting the 2 years' dividend back. LLPC pays 0.25% more and is still cheaper than NWBD (104p).

As it stands now, LLPC dividends are lost for two years.

[deadly] 18/3/2010 21:07

zangdook

Please explain what do you mean by : "LLPC in effect you get your first two years' dividends up front"

Are they obliged to pay the suspended dividends at some time? - I thought they were just lost.

[marben100] 13/3/2010 18:12

hirani2 - yes, recently received a circular confirming that no payments will be made for a period of 2 years commencing 31st January 2010.

I would also strongly advise checking out: for details of a campaign regarding Lloyds action, esp their decision to make these securities ineligible for the ECN/ECA.

[jimbox1] 12/3/2010 21:54

Thanks guys, I appreciate the feedback. It seems that both LLPC and NWBD look like good candidates for the SIPP.

[hirani2] 12/3/2010 21:24

Has it now been confirmed that LLPC will not be paying any dividend for the next 2 years?

[zangdook] 12/3/2010 15:39

I wouldn't - LLPC in effect you get your first two years' dividends up front and it's still cheaper than NWBD, and pays 0.25% more. I have a bit of each and like it that way. If I had more money to spend I'd buy LLPC.

Mark - NWBD is quasi-cumulative as well as mandatory, so I'd certainly expect a premium, but yes, much less than at present.

73.25 + 18.5 = 91.75, about 10p cheaper than NWBD.

[solarno lopez] 12/3/2010 15:32

So we SELL the Lloyds Prefs LLPC and buy NWBD

[marben100] 12/3/2010 15:28

zangdook: the market doesn't have a very long memory. ;0) But, given the severity of recent events, it may be longer than usual before memories fade. I agree that it may take somewhat longer than the 2 years of missed payments before the risk discount dissipates - but ultimately, it will become pretty small.

Not unreasonable to expect that the yield differential may be no more than 1% once payments resume, so a fair old gap to close.

Cheers,

Mark

[zangdook] 12/3/2010 13:48

Current events provide an illustration of the distinction, but it will remain in the terms of the two prefs. NWBD will provide greater security in the event of future banking troubles.

[stemis] 12/3/2010 12:54

In 2 years that distinction will disappear as Lloyds returns, or wants to return, to the dividend list.

[zangdook] 12/3/2010 12:14

NWBD is effectively mandatory, LLPC is discretionary, so NWBD ought to trade at a premium to LLPC.

[stemis] 12/3/2010 12:01

Not really.

At the moment NWBD yields about 8.8%. There's no reason LLPC won't settle at a similar level, which would be a share price of 105p.

[jimbox1] 11/3/2010 22:12

The way I see it, is that this is like a ZDP for the next two years. No dividends, but should appreciate by over 30% to at least 100p as the prospect of a resumption of dividends approaches. After two years, it yields 12.25% in perpetuity, based on today's buying price of 75.5p. Is this a dream investment or am I missing something?