Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to OLTB,Cornytiv34,Blatter,eyeball08,ADrunkenMarcus, for Donating to support the site

Co-op Group 11% 2025 - half way mark

Gilts, bonds, and interest-bearing shares
hiriskpaul
Lemon Quarter
Posts: 1784
Joined: November 4th, 2016, 1:04 pm
Has thanked: 71 times
Been thanked: 407 times

Co-op Group 11% 2025 - half way mark

#273036

Postby hiriskpaul » December 23rd, 2019, 11:20 am

Seems like only yesterday that many of us piled into Co-op Bank securities before the Bank restructuring that resulted in these Co-op Group bonds. Mark Taber (aka OldBoyReturns) somehow achieving the remarkable feat of persuading LT2 holders and the Co-op Group to bail out the more subordinated retail paper. Yet here we are half way to maturity. I have kept all the bonds issued to me and picked up a few more along the way.

In January 2014, shortly after they became tradeable, I obtained a price to sell 10k nominal of 116.25, for a yield to maturity of about 8.8%. Current price to sell 10k nominal is 124 (as of this morning), YTM 6.1%, so much of that 8.8% has been front loaded - the internal rate of return has been 10.3%.

Co-op Group, having been given a kick up the backside, are now profitable and growing their retained businesses. On a risk/reward basis I cannot see a better deal right now, so will continue to hold, despite the drop in yield.

Well done again Mark!

Return to “Gilts and Bonds”

Who is online

Users browsing this forum: No registered users and 3 guests