Lloyds Grp 9.25 Discussion Threads

[cwa1] 31/10/2019 10:05

For me it is simple, I backed up the truck when the prefs were really cheap and loaded up, amongst others, with LLPC, LLPD and LLPE. I've kept nearly all of them and they now pay a prodigious yield. So I don't have them in preference, I have them as well, to answer your question.

[alphorn] 31/10/2019 09:43

Out of interest why do you have LLPC in preference over the LLPE?

[value hound] 31/10/2019 08:56

Payday is the 28th

[cwa1] 31/10/2019 08:29

LLPC/D XD today, pay 30/11

[loglorry1] 09/7/2019 13:32

Ticking up nicely as rates fall.

[cwa1] 02/5/2019 08:07

Payday 31/5/19 for the record.

[stemis] 30/12/2018 16:20

I think the worst case scenario that the BoE envisages is that sterling would come under huge pressure due to Brexit so the bank would have to raise interest rates either to support sterling or to deal with the import lead inflationary pressures. This would affect affordability of house prices at current levels so they'd fall accordingly.

[alphorn] 30/12/2018 15:39

Doubt it. Hold LLPE for a while now for yield.

[4spiel] 30/12/2018 13:26

Is there any risk of Lloyds becoming insolvent if hous prices fell 25-33%.? House prices greatly inflated in Greater London and parts of the South but not so much overall. Lloy share price weak. some of the Building Societies maybe at some risk of not paying PIB coupons that lend too freely.How reliable the BOE stress tests. But surely worst scenario that the greater risk with these bank prefs is a depressed price for indefinite time. Much controversy about the impact of No Deal- nobody actually knows for sure - or for sure it will be the case.Many staying in cash as range of uncertainty greater than normal.LLPE cheaper but come 2024if they were not called interest rates by then higher these maybe cheaper than par

[montyhedge] 13/12/2018 09:20

As Mark Twain said it not the return on my money, it's the return of my money. A no deal looks more certain after the vote last night. Brown stuff will hit the banks fans.

[value hound] 13/12/2018 08:59

Available to buy at 137.34p, 6.735% yield; what's not to like - can someone tell me???

[redartbmud] 01/8/2018 07:50

Pimsim

Thanks, good news.

[pimsim] 01/8/2018 07:16

Half-year report

Note:

The Group has six series of preference shares outstanding in the market, two of which are irredeemable. The Group has no plans to use a capital reduction to cancel the irredeemable preference shares.

[cwa1] 03/5/2018 08:12

XD today, pay day 31/5

[kenny] 27/4/2018 08:17

Not that I think it is necessary but the company has today made this announcement regarding its RUSP class preference shares:-

"Raven Russia notes the recent announcement by Aviva plc of its ability to cancel certain irredeemable shares it had issued at or close to par value through a reduction of capital, and the resulting interest from the UK Financial Conduct Authority and a number of institutional investors. The Company has taken its own legal advice on the matter. In light of that advice, the Board considers it appropriate to put to shareholders at the Annual General Meeting proposed amendments to the Articles that would provide that a reduction of capital of the Company's cumulative redeemable preference shares of 1p each ("Preference Shares") or Convertible Preference Shares (which, in effect, could implement a cancellation of such shares at a significant discount to their market price) should require the specific class consent of the relevant class of shares. The amendments will also require the class consent of the holders of Preference Shares (in so far as they relate to the rights attaching to the Preference Shares) and the holders of Convertible Preference Shares (in so far as they relate to the rights attaching to the Convertible Preference Shares)."

[kenny] 27/4/2018 01:28

Another preference share, RUSP are protected from being redeemed at par because they are a non-UK company (Guernsey) so are not liable to UK company law but Guernsey company law.

That company's articles specifically state at Clause 2.7 in its Articles:

“2.7.11 Save as expressly provided in this Article 2.7, the Company and the holders of the Preference Shares shall have no right to redeem the Preference Shares.”

Further, the Articles contain no reference to “capital reconstruction”; or “substitution”. In Guernsey company law (and that company's Articles closely mirror those) there is no concept of a company’s right to cancellation of capital – the only exceptions being that a company may cancel shares held in treasury or unissued capital.

[nicholasblake] 26/4/2018 21:09

Don't mention it.

I haven't really looked, my guess is that there will be some others.

[investing wisely] 26/4/2018 20:44

Nicholas Blake

Thank you very much.

Are BP Prefs the only Prefs that you think are protected from a return at par? Or do you think that there are any other Prefs that are protected?

I am interested mainly in the larger size issues such as the big banks, NWBD,SAN,STAC and also insurer RSA, and Northern Electric NTEA.

[nicholasblake] 26/4/2018 20:29

It's in the articles, which are on BP website. If the ords attempted to remove the Spens clause it would be a variation of the terms of the pref's, which I seem to recall requires a class vote of pref's. Ought to be easy to find in articles.
The yield at the repurchase price for the pref's has to be the same as that of a reference long dated gilt, or a suitable replacement if no longer in issue.

[loglorry1] 26/4/2018 19:44

Nicholas what if the BP ords vote to change the articles to remove the spens clause in the BP prefs? Is the protection in the prospectus if so can you link to it?

[investing wisely] 26/4/2018 19:41

Nicholas Blake

That is interesting. I have not heard about this capital return rule for BP Prefs. Can you please explain exactly what the formula or rule is about gilt yields and where did you see this information? Are BP Prefs the only Prefs that you think are protected from a return at par? Or do you think that there are any other Prefs that are protected?

[nicholasblake] 26/4/2018 13:42

Wood and trees.

[carcosa] 26/4/2018 13:29

The last rate hike (November 2017) of 0.5% knocked off 1% of the LLPC price... and a month later LLPC share price increased by 6%...