Lloyds Grp 9.25 Discussion Threads

[aspex] 28/5/2013 05:50

IMHO Lloyds cannot buy any LLPC/D until they reinstate the ordinary dividend and then only buy in the market and presumably there are other prefs of higher priority.

[insipiens] 20/5/2013 10:53

They're irredeemable so I guess other than passing Statutory law to change the terms LBG would have to tender.

I haven't read the prospectus since 2011 when I bought these but I don't recall anything suggesting a voluntary redemption.

[redartbmud] 20/5/2013 10:32

As a holder that is relatively inexperienced in this type of investment I am interested in the consensus view of the sustainability of the current share price
I believe that llloyds inherited a number of HBOS prefs nad floating rate notes that it will need to tidy up in due course.

How is this likely affect LLPC?

red

[pierre oreilly] 17/5/2013 10:31

The trades at 119.47 are buys, but highlighted as sells.

[holts] 16/5/2013 07:46

Still being pushed out at 119.25

[tiltonboy] 09/5/2013 13:56

They are 120.5 bid with WINS. I think that Collins Stewart stock has gone.

[holts] 09/5/2013 13:42

Collins Stewart have some on offer at 119

[catcheemonkee] 08/5/2013 17:57

Lloyds can't launch a mandatory "offer". Have a read of the prospectus.

[holts] 08/5/2013 13:48

That would be interesting

[jammy00] 08/5/2013 12:19

If Lloyds finds capital planning a stretch it will
launch a mandatory "offer" to convert these into
something - most probably straight fixed interest

[dangersimpson2] 17/1/2013 10:05

An interesting scenario which was raised by OBR and others on TMF:



whereby LLPC coupons become mandatory if it becomes disqualified as regulatory capital which is looking likely under Basel III. An exchange into regulatory instruments has to be on no worse terms which makes this look impossible.

Hence LLPC should begin to trade towards must-pay yield. Obviously a risk premium over consoles should apply to reflect the risk that the UK government will not be willing or able to support LBG in any future financial crisis, but the risk of coupon non-payment should be priced out.

[Just for clarity I have not read the prospectus recently to check these terms but I personally trust the TMF poster stating this, you may want to read this yourself to confirm.]

[jimbox1] 17/1/2013 09:20

The nominal par value is not relevant with a perpetual, because the share will not be redeemed. The only comparison to be made is with other perpetuals or very long term bonds. The yield on Consols is currently 4.05%

[aspex] 17/1/2013 08:36

IMHO both LLPC/D will always hold a high yield in the present low interest environment because the capital value cannot get too far above the 100p without allowing for risk of a pull back.
An example would be a price of 150p with a yield circa 6.5%. The price premium of 50p would be too high to sustain in the event of a major base rate shift.
Also Lloyds can buy back but only after the ordinary dividend is re-started.
Would they want to buy back at 150p? They would rather wait for a price below the present and pay a small premium only to get rid of the interest cost burden.

Someone with greater knowledge could perhaps comment on the above logic.

One further comment. I believe the EU interference with the dividend would not be repeated because it was exemplary and Lloyds are now doing the right thing in trying to repair the damage.

[westcountryboy] 16/1/2013 10:22

I doubt that very much, I'm afraid! LLPC can be sold today for 120.9 and so is now trading at par with the Cocos and not far shy of the must-pay NWBD (7.1%).

[pierre oreilly] 16/1/2013 10:13

Yielding 7.7% at 120p.

As it becomes clearer that the divi/coupon will be paid, this should eventually move to 3 or 4% yield imv.

[blobby] 20/12/2012 15:38

Not really IMO. The Nat West prefs are cumulative and so much more valuable if the bank gets into trouble.

[harmonics] 15/12/2012 20:56

If you compare LLPC with Nat West & Coop prefs this has another 10p to go!

[harmonics] 16/11/2012 11:41

P@ my thoughts exactly, I would like to cash in those lovely blue numbers and bank the profit but...WTF is better than this share?
I guess if it did get to 130 then the divi would be c7% so at that point I would bow out!

[aspex] 15/11/2012 18:58

Interesting to see that the dividend payment has already been overtaken in the price rise since ex div.

[p@] 15/11/2012 10:33

The problem is,if you take it out of here where do you put it?

[jimbox1] 14/11/2012 14:02

I don't really see what will stop this going to 130p in fairly short order. At 130p, the yield would still be over 7%.

[p@] 07/11/2012 16:13

WOW!-109p xd.