Metro Bank

[NealMorris]

Thanks Swan, HL noted. I looked at the 9.5% but this is an extremely illiquid bond with little market. Having been caught up with some coop bonds that had a minimum 100K clip, I know how impossible they can be to sell and I eventually ended up taking a haircut from one of coops many scheme of arrangements, they got permission to bail in, weren't even coco's, remember Bailey thought it was a great idea and waved the proposal through. Once bitten and all that.

[hiriskpaul]

Very positive Q3 Trading Update: https://www.londonstockexchange.com/new ... e/15697974

[88V8]

Very positive Q3 Trading Update: https://www.londonstockexchange.com/new ... e/15697974

Yes, a welcome bring-forward of profit which had not been expected until 23Q1. Muted response so far in the ords, and the 2028s are very pessimistically priced.

With rising rates we should be on a better path.

V8

[hiriskpaul]

Actually the ords are up to 85, from 72.8 before the announcement. Not much movement on the bonds though, maybe up 1.

[Swanmore22]

Hi Paul,

The ords have been performing of late, and the 5.5% has had a restructure.
From my online feeds i get indicatives of 56/58 for the 5.5% and 77/79 for the 9.5% .
Just wondered if you have checked dealable prices of late ?.

Swan

[88V8]

The ords have been performing of late, and the 5.5% has had a restructure.

Yes, wish I had topped up the ords.

Restructure... you mean this?

V8

[hiriskpaul]

Hi Paul,

The ords have been performing of late, and the 5.5% has had a restructure.
From my online feeds i get indicatives of 56/58 for the 5.5% and 77/79 for the 9.5% .
Just wondered if you have checked dealable prices of late ?.

Swan

More of a technical change than a restructure and no change to risk.

Have no info on deals, but 56/57 for the 5.5% is the indicative I have from a friend with access to a Bloomberg terminal.

Uncertainty has now been lifted over the FCAs proceedings with the previous RWA disclosures, with Metro getting a £10m fine. I think that has boosted the ords. Beats me why both of the bonds are not trading a lot higher, but high yield is very beaten up at present, which doesn't help.

I am patient though and happy to collect the coupons - another due at the end of the month!

[GoSeigen]

Hi Paul,

The ords have been performing of late, and the 5.5% has had a restructure.
From my online feeds i get indicatives of 56/58 for the 5.5% and 77/79 for the 9.5% .
Just wondered if you have checked dealable prices of late ?.

Swan

More of a technical change than a restructure and no change to risk.

Have no info on deals, but 56/57 for the 5.5% is the indicative I have from a friend with access to a Bloomberg terminal.

Uncertainty has now been lifted over the FCAs proceedings with the previous RWA disclosures, with Metro getting a £10m fine. I think that has boosted the ords. Beats me why both of the bonds are not trading a lot higher, but high yield is very beaten up at present, which doesn't help.

I am patient though and happy to collect the coupons - another due at the end of the month!

Paul, it's tempting to switch some capital from MBSR, where I am overweight, into one of the Metro subs. What's your view on the relative risk?

Does anyone know if the Metro debt can be traded via either HL or II?

GS

[88V8]

Does anyone know if the Metro debt can be traded via either HL or II?

I hold 44VG through ii.
Telephone.

V8

[hiriskpaul]

Does anyone know if the Metro debt can be traded via either HL or II?

I hold 44VG through ii.
Telephone.

V8

I hold the 5.5% at HL. The 9.5% is senior but HL say they are unable to trade it.

[formoverfunction]

I'm holding the 9.5% 2025's & 5.5% 2028's on WiseAlpha.

[Swanmore22]

Tks Paul,

5.5% are with HL and the 9.5% are with AJBell ..the settlement price is updated sporadically.
I too thought we were better bid, following the lead of the ords, but in the sub debt sphere pricing is very sketchy.
3rd Qtr results were encouraging. Profitable in September and should be in 4th Qtr.
90% of retail mge on fixed rates til 2024.

"Q3 total net loans of £12,830 million increased 4% both QoQ and YoY, with a continued mix shift in line with strategy. Residential mortgages and consumer unsecured lending grew, partially offset by repayments of government-backed lending and reduction in Commercial real estate lending. The Bank is appropriately positioned, with a loan to deposit ratio of 78% and 55% of the loan portfolio being Residential mortgages. Over 90% of the Retail mortgage portfolio is fixed, with an average repricing duration of 2.1 years, and the average DTV of 56% remains stable. In aggregate only 5% of Retail mortgages now have a DTV of over 80%."

The adjustment to higher rates is going to be painful for the housing market , a mkt that has looked stretched for some time and one can only hope the pain lower down the ladder is not as bad as previous downturns.
As soon as we have started hiking/normalising. the "market" can't wait to call an end to hiking cycle and predict when the cuts will start.
Dangerous game.
Am ok with Metro..not overjoyed ,but we should see some price improvement alongside the improving fortunes of the issuer.

Best Wishes all
Swan

[Surerera]

Metro equity seem to be having a great run, I'm surprised the subs aren't moving. I tried to buy more but AJ Bell seem to think it's a COCO so won't let me deal and iDealing don't deal in the bond.

[BondSquared]

Ha anyone managed to buy Metro subs via AJ Bell? And if so, is it eligible for a SIPP and/or ISA, or does the Coco police drop in and say nonono?

[BondSquared]

Should have read the whole thread first re dealing with AJ Bell in the Metro sub.
The AJ Bell Coco police has struck and declared no trading in 5.5% Metro sub because it's a Coco. Only that it isn't. Ugh.

[Surerera]

Bondsquared, I bought some about a year ago through AJ Bell with no problem but when I tried to buy more they decided it's a COCO. Nuts.

[NeilOne]

I bought some metro 5% at HL but paid 67 for minimum size (100k) though might have cheaper (64-5) in bigger size

[hiriskpaul]

I note that both the ords and bonds have been on quite a rally recently. Anyone know why this might be as there have been no announcements?

I have been informed that the 5.5% bonds are trading around 66/68 - the LSE prices are nonsense as usual.

[hiriskpaul]

5.5% indicative prices now 69/71.

One possible reason for the rally is I suppose the reset on 26 June. If not called, the coupon will rise to 5y gilts + 4.458%, about 7.6% if it happened today.

If not called (call very unlikely), the bonds eligibility for Tier 2 capital amortises over the remaining 5 years to maturity, so Metro may seek to offer early redemption/restructuring at some point before maturity.

FY results out 2 March. Should be interesting!

[NeilOne]

price here is line with Paul's post above https://www.boerse-frankfurt.de/bond/xs ... -5-5-18-28

HL is still showing as 55