Lloyds Grp 9.25 Share Price (LLPC)

Does the Bank 2025 rule only apply to Banks (NWBD, LLPC, SANB etc) or does it also apply to other financial companies (GACA, RSAB, AV.A etc )?

It seems so many have bought bank Prefs not knowing about the fact they will soon not be Tier 1 and can be repaid substituted with inferior paper

Spar hawk

Many thanks for your link to lemon fool. It’s a good site to gauge what others are thinking. To minimise my risk of the pref’s being redeemed at par (worst case scenario) I have concentrated my holding in preference shares on ones that are closer to par such as STAC and GACB

I would like to add another pref share to spread my risk but cannot find one attractive enough

Hi Dminvestor

I share your concerns about the price that maybe offerred if these preference shares are bought out, and recently sold my holdings at a small loss and moved into TW. which was offering a yield of > 7% at the time, higher risk but with a chance of capital growth as interest rates fall

This board isn't very active and as you have quite a few of these you maybe interested in this discussion forum, which is more active discussing preference shares / Pibs and Bonds

https://www.lemonfool.co.uk/viewforum.php?f=52

Good luck with your investments :-)

I have quite a few of these myself but there is a cloud on the horizon in 2025. As I remember, in 2025 these preference shares cannot be included in the banks tier one capital and therefore there will be pressure to replace them or buy them out. What such terms would be anyone could guess but given the past debacle I can’t think we would leave us worse off. Could be a loan stock offering a yield similar to what we earn today? ( this is what Lloyds bank did a few years ago which was great until they cancelled the loan stick a few years later at an unfair rate to the holders.

I am optimistic in that given the past debacle any buy out will be fair and therefore we should enjoy the returns for now