West.brom 6.15% Discussion Threads

[my retirement fund] 22/4/2022 21:08

Looking at the trades. This buyer must be West Brom in the market having instructed a broker to acquire what they can pursuant to a reverse enquiry, as before imo. I assume they have supervisory consent.

[my retirement fund] 22/4/2022 14:10

Assuming you got offered 87.5p still another 14% upside left.

[cousinit] 22/4/2022 12:25

Out today. Did get more than my self imposed £85 target

[my retirement fund] 22/4/2022 07:12

Anyone left holding these or is it just me ?

[my retirement fund] 20/4/2022 09:55

Defiantly a strong buyer in the background here

[my retirement fund] 11/4/2022 07:33

Hopefully not long to wait now. I'm expecting a very high chance of a par cancellation and redemption call along with the societies publication of final the results end of May. I don't think they will be asleep at the wheel now for another 6-12 months, would damage their credibility.

[cc2014] 11/4/2022 07:24

Nicely inside spread

[my retirement fund] 11/4/2022 06:59

what were you offered ?

[cc2014] 06/4/2022 11:58

I've sold.

I remain of the view that it continues to make sense to redeem these.

[my retirement fund] 25/3/2022 14:53

First payment been announced so these must be attracting the attention of the board now with the issue coming to the front.

[cc2014] 10/2/2022 10:32

Offer still very slowly creeping up. 78p to buy now. I really would like to see it above 80p

[my retirement fund] 03/2/2022 12:04

Still none available

[cc2014] 02/2/2022 12:19

Just dropping in to note the mid price is slowly rising as the offer nudges up very slowly.

Fingers crossed the bid will start to move with it too over the next couple of weeks.

[cousinit] 17/1/2022 18:19

It's unlikely that we'll see them being bid at 85p - I suspect that would only be if they were left outstanding and paid the estimated c3% coupon late this year or into next. They might creep higher than these levels but a repayment announcement would likely be the catalyst to get up to par.

I did have a quick looks at Raven, thanks. Might be tempted to see what happens re Ukraine before getting off the fence.

In terms of risk, when I first bought these PIBs I definitely placed them in the "not for widows & orphans" category (that was about a decade ago @20p).

[cc2014] 17/1/2022 15:17

I've being considering this today and I'm definitely not letting mine go for 85p.
I would definintely let mine go for 100p and I guess if I'm pushed there's an opportunity cost thing which means I would probably accept 95p even though I'd feel aggreived.

I can't see an offer of 95p though. Too much cost for WBS compared with just going for it at 100p.

Winterfloods are slowly walking up the bid at 73p. They clearly don't want any more buyers as they've opened their spread and are at 93p

[my retirement fund] 15/1/2022 17:11

Interesting there's some very high risk stuff there. I don't think I could stomach such risks like Macau! I assume you have raven Russia prefs?

[cousinit] 15/1/2022 11:06

Well, 17.5% from 85p if it does get redeemed in the very near future (which I think is likely, but not certain.)

Dry powder could be quite valuable as inflation/interest rate 'tussles' may generate significant volatility.

In my discount/special sits bucket I've just sold Enquest 7% at above par (originally bought in 30s) given the capped upside with it being due for redemption next year. What I've been recycling sales/capital returns into recently:

CGEO (just announced a small disposal)
AA4 (although at lower levels)
SLFR (and X/Cs)
CRS (at lower levels)
RSE (although I hate it!)

and mulling over topping up GRIO, MPO and maybe even HAN

[my retirement fund] 14/1/2022 20:55

I don't think I'd take 85p I mean what else is going to give a safe 20% upside in the next year? Or put it another way can I ask what you would buy right now if you took 85p?

[cousinit] 14/1/2022 11:53

I think if someone bid me 85p next week I'd probably take it. If they waited until closer to April then I'd take my chances on a par redemption.

I'm surprised that WBS wasn't the buyer as they should be proactively looking to retire worthwhile clips.

My understanding is that on a coupon payment date they can redeem the entirety at par at their complete discretion. It's only if they try to chip the price or attempt it at a different time that you could hold out.

[my retirement fund] 14/1/2022 11:46

Thats possible, must always is a sporadic trickle of clueless small sells from the public, family estates on death finding pib certificates in bottom drawers etc, for a well connected bond trader its easy pickings if your FCA licence allows you to run a short book.

[cc2014] 14/1/2022 11:10

Basically £50k.

I'm of the view that since the trade took place on the 10th but the price didn't move until the trade was reported that one of the MM has taken the trade on at risk, or at least some of it.

I suspect in the end the MM will square his position and make a profit because there's always someone willing to let a few shares go as the price rises.

Would I sell though for 80p? No, we are in the end game now and WBS have to get these pointless PIBS off their balance sheet. My gut feeling remains the same as ever, that WBS issued them at 100p and if they make an offer now at 100p about 95% of shareholders would accept and that would include me.

However, if Mr £50k comes in for another lump at say 90p next week and drives the share price up there, 100p doesn't look so attractive.

I would suspect there are very few of these shares available to trade. Every time I've tried to buy the liquidity has been zilch. Unless some shares have come on the market buying within the spread for any sort of volume has been very difficult.

[cc2014] 14/1/2022 08:06

hmm. Late reported 62k buy at 80p

[cc2014] 14/1/2022 08:02

Something leaking?

[my retirement fund] 05/1/2022 14:07

If we get a dividend prior announced with radio silence on redemption news, it will probably be 95p as a guess.