Lloyds Grp 9.25 Discussion Threads

[jaf111] 13/11/2019 08:21

Moving up nicely along with most other prefs (currently 153/157p)but struggle to understand why these trade below Ecclesiastical (160/163p) when coupon is higher on LLPC - 9.25% vs 9.0% ELLA.

At some point this pricing mismatch will surely reverse.....

[cwa1] 31/10/2019 12:44

Yes, you're right, it is showing the wrong date for XD. To be fair to the FT they did at least get that right!

[jimbox1] 31/10/2019 12:39

Dividendmax.com site shows ex-div date as 1st Nov, but LSE site today showing special conditions ex-div already.

[cwa1] 31/10/2019 11:13

VH, thanks for that. Thought it might be a useful site-but I put LLPC in the site search box and nothing comes up. Ditto for LLPD and LLPE. Is there some way to find these prefs by their ticker, or some other way? How did you find them on the site? Thanks for any thoughts.

[value hound] 31/10/2019 10:47

I found it here CWA1:

hxxps://www.dividendmax.com/united-kingdom/london-stock-exchange/banks/lloyds-banking-group-975-non-cum-irredeemable-pref-shares/dividends

[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 12:32

Ticking up nicely as rates fall.

[cwa1] 02/5/2019 07:07

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 06:50

Pimsim

Thanks, good news.

[pimsim] 01/8/2018 06:16

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 07:12

XD today, pay day 31/5

[kenny] 27/4/2018 07:17

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 00:28

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.