Tuesday 16 October 2012

CO-OP 5.5555 ... encouraging stuff

Yorkshire Building Society today announced a tender offer at 82% of par plus accrued interest for its 5.649 perpetual bonds, which could be called in March 2019. The 82p/shr offer compares to the mid-market price of 71p/shr prior to the announcement. This provides good evidence that some of the smaller, conservative borrowers are prepared to call or offer on perpetual bonds; in this case seven years in advance of the call date. I reckon it makes the discount to par on the CO-OP 5.5555 perpetual (link) appear even better value, especially when the potential return on equity through ETX Capital could be so high. 

Disclaimer: The information, discussions or topics referred to on this blog should in no way be considered “advice” to buy or sell anything. The information which may be referred to is freely available in the public domain and where required the source of information is referenced to for verification. While every effort has been made to ensure the veracity of any information contained within this blog, the author accepts no responsibility for the accuracy of any information contained within this blog or for the sources of information which may be referred to. Readers are responsible for their own actions and interpretation of the information contained within this blog. 

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