West.brom 6.15% Discussion Threads

[my retirement fund] 05/1/2022 14:05

It will eventually hit par when redemption is called.

[dlp6666] 05/1/2022 12:53

How close to par do you reckon it'll get to (I bought some at 69.7 last week)?

[my retirement fund] 05/1/2022 12:35

Next leg up has begun imo

[my retirement fund] 29/12/2021 15:17

It's 2.8 plus 5 year gilt. 5 year guilt has bottomed climbing back to 1%. Accounting for the fact administrative and distribution costs on top of perhaps 4% interest payable next year on capital that counts for nothing more than a book liability. it would be idiotic to not redeem at par. If your looking for long term income you have come to the wrong place.

[dlp6666] 29/12/2021 14:30

Thanks for clarifying.

I've rooted around and found some more information -

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- which makes it look like IF they do decide to pay anything out at all, it could even be lower than that c.3% [effectively maximum] yield.

So probably only worth holding WBS for the eventual capital gain on redemption.

[my retirement fund] 24/12/2021 10:29

Yes specifically the 5 year guilt.

[dlp6666] 23/12/2021 14:13

[Mirror post from the FIX thread]

Am I right in thinking that, even if West Brom BS DID decide [temporarily] to take a less easy/prudent route and resume a regular coupon, wouldn't that at least pay out a c.9% yield at today's price (admittedly only discretionary and not future-proof guaranteed)?

[my retirement fund] 25/11/2021 14:24

There is just less than 7.8 million or so outstanding now!

[cc2014] 25/11/2021 13:34

If I were them (and I'm not and I want to try and stay neutral and not open to suggestions of ramping) I'd get on and do it now.

Now, because with the share price where it is, there will be no bad publicity and how could any shareholder complain with an overnight uplift in price of 50%.

Also, because to make an informed decision relevant financial information has to be provided and that was done yesterday so wouldn't require refreshing. Albeit if it's a capital cancellation at par then financial information would not be required but in my mind I still see this as fair and reasonable practice.


West Bromwich BS do not have a history of being generous though. Indeed the opposite. That might lead them to do a tender at something less than par shortly and then clear out the rest with a capital cancellation a year later. That would be 2 lots of costs though and I guess that also risks the price trading above par giving them a publicity headache.


We will see in due course. To be honest I'm not bothered and it's easy for me speculate as I'm sitting on a decent capital gain, the dividend starts shortly and I'd be happy to collect the dividend in perpetuity if WBS do nothing.

[cousinit] 25/11/2021 12:54

But wait until the last possible moment before paying a coupon so those that those who sold out in the LME don't feel too short changed...

[my retirement fund] 25/11/2021 11:02

Conjecture:
Easist solution is capital cancellation at par. That guarantees 100% cancellation.

Exactly, any other approach would simply not make financial sense. The market makers wont be getting mine, thats for sure LOL !

[cc2014] 25/11/2021 09:11

Tells you the MM are artificially keeping the price down to square their books and as soon as they have found a mug seller they will shift the price.

[spittingbarrel] 25/11/2021 08:49

I just tried to get an offer from the market for 10,000, the cheapest was 100!!!

[my retirement fund] 24/11/2021 17:03

Wow what a 6 months they have had. So during the period they report the notional PPDS reserve deficit reduced by GBP3.2m (25% of GBP12.9m) leaving a deficit of GBP0.7m at 30 September 2021. It looks like these are a hairs breath of starting to pay some interest. I guess given the circumstances there is a high probability of a sensible offer or probably a repurchase at par to extinguishe the remaining issue.

[my retirement fund] 18/11/2021 09:13

Pushing higher again prehaps a few wise soles cotton on to the fact of the accelerating cancellation of legacy fixed income.

[my retirement fund] 08/11/2021 21:03

Up UP UP !!!! effing UP !!!!

[cousinit] 28/9/2021 18:12

Suspect it's more to be seen to appease the institutions who supported the LME by not "rewarding" our resistance too soon

[cousinit] 28/9/2021 15:53

So do we get anything other than the 'usual' cancellation of interest payment for 5th October? I was half expecting a second buy back in the market announcement after the bid price marched up over the summer.

[cc2014] 05/8/2021 16:13

They issued £75m of these in 2005 and as of last year end there were less than £8m left.

WBS's total capital is £417m so these must be an annoyance.

[my retirement fund] 05/8/2021 15:27

You'll get you pound eventually, all good things come to those who wait. I should think there must be a legal case for compensation here too if anyone were brave enough to take them to court.

[cc2014] 04/8/2021 08:34

The MM aren't getting mine.

Well not at this price anyway. I might take 100p

[my retirement fund] 03/8/2021 17:47

Still stupidly cheap despite lack of stock

[cousinit] 28/7/2021 11:42

Wonder if the move in the bid is to try and shake out any loose stock for WBS to then buy back?