Lloyds Grp6.475 Discussion Threads

[alphorn] 25/3/2020 13:29

Dividends are IMO a key issue. Many companies are already cancelling them (Jacko07 posted a list today).

IMO Lloyds has to be a candidate.

History:
redartbmud14 Feb '16 - 09:50 - 250 of 300
0 0 0
LLPE is a Non-Cumulative Irredeemable Preference Share.
According to the Prospectus, it can be called in 2024. On that basis, Lloyds is unable to touch it until that date.
They could suspend the coupon, but if they did they would not be able to pay a dividend on the ordinary shares.

They are Non-Cum.

In event of the Ords dividends being cancelled they would likely do the same for the Prefs.

What price then? Maybe half?

What to do???

[badtime] 18/3/2020 14:07

Horrendous spread and no online quote

[pvb] 17/3/2020 14:46

Yes. Under par now.

[redartbmud] 17/3/2020 14:41

Divi received.

[alphorn] 17/3/2020 14:35

6.7% yield now.

[skyship] 04/1/2020 12:55

free stock charts from uk.advfn.com

[alphorn] 28/5/2019 08:14

Ticking along - boring is good!!!

edit 6/6/19 yield 5.98%.

[pvb] 16/3/2019 13:42

Bing!

It's still paying - 15 March.

[redartbmud] 13/2/2019 11:33

Alphorn

I agree with your summary.
I hold, and will continue to do so. Bought well under par, so I have a stonking yield.

[alphorn] 13/2/2019 11:19

That time of year again - xd next week. Price will be underpinned for the moment with the lower inflation and the lower expectations on the rate front (eg. refer LIBOR).
Yield 5.95% this morning.

[alphorn] 15/8/2018 11:48

XD this week.

[alphorn] 07/8/2018 10:16

Added a bit more.

[alphorn] 25/4/2018 09:15

Small comfort from today's IMS - nothing about Prefs.

[pvb] 23/3/2018 11:09

Whoops! As Aviva backs down. ;-)

[pvb] 18/3/2018 11:03

Another div paid, presumably accounts for the uptick.

[my retirement fund] 12/3/2018 13:25

BBYB IS THE TICKER

[my retirement fund] 12/3/2018 13:25

Hpcg Balfour Beatty have a time limited preference share that gives a better over a few years than this that has a better yield on offer. Sub 5% is very low imo till redemption.

[alphorn] 12/3/2018 12:01

LIBOR is not indicating any quick pick up in GBP rates (in the absence of any run on sterling).

[hpcg] 12/3/2018 11:47

As of today 1000 shares on offer and 1500 on bid so any larger quantity and might well have to trade outside of the spread. I bought some last week at 109.5.

There is a bit of loss of perspective here I think. There is a world of difference between a perpetual issue and a time limited issue. The risk here IMO is interest rates not shenanigans to force an early redemption, and even then cash rates have so far to catch up that even interest rate risk is questionable if one is likely to hold to the call date.
It will all depend on personal circumstances though; tactically I am allowing my Ratesetter lending to run down because I think that carries a lot more risk, whilst lending rates achievable do not compensate.

[par555] 09/3/2018 20:45

Like others I hold some of these and am pondering whether to hold or fold.
I am confused by the prices of the trades shown on ADVFN today. Bid/Offer spread shown as 105.5/109.5 for all trades but actual deal prices all between 111.35 and 112.5. Does this mean the only trades were buys outside the spread ? Any guidance gladly received.

[alphorn] 09/3/2018 18:04

In any event IMO Lloyds will watch as Aviva goes through the motions. Aviva are very aggressive as we saw with the endowments; sailing very close to the wind IMO.
I was thinking of adding to my LLPE today.

[redartbmud] 09/3/2018 16:39

6.475% until 2024, in a market where interest rates are rising.
Doubtless they would replace them with other debt, at a price.
Will they leave them alone and chase bigger coupons in the first instance?
Going to court will cost them anyway, so how much benefit will be gained?

[pvb] 09/3/2018 16:27

We shall have to see, bearing in mind what is going on with the Arriva Prefs.

[redartbmud] 28/1/2018 09:22

4s

I suppose it depends on:
1. The size of the individual loans. Is it 'immaterial'?
2. The ease in which debt can be redeemed. Some capital may be more expensive to support, but far more difficult to buy back.
3. Their forecast on the cost of capital going forward. Is it worth it?