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USD prefs

Posted: November 14th, 2016, 8:16 pm
by air04
The USD prefs of banks seem to be going down, but the bank stocks seem to be going up.

It may be due to expectation of interest rate hikes... but I feel that the fall is more than it should be..

DYOR

Code: Select all

Symbol   Coupon   Accrued ClnPrice LastTradePrice
RBS PRL   5.750%   0.248   24.46   24.71
RBS PRH   7.250%   0.313   25.02   25.33
RBS PRF   8.500%   0.367   25.46   25.83
            
RBS PRS   6.600%   0.285   24.78   25.06
            
NW PRC   8.622%   0.390   25.32   25.71
            
BCS PRA   7.100%   0.384   24.99   25.37
BCS PRD   8.125%   0.440   25.14   25.58
            
SAN PRB   4.000%   0.000   23.20   23.2
SAN PRA   6.800%   0.056   25.28   25.34
SAN PRC   6.500%   0.142   24.51   24.65
            
ISG      6.125%   0.193   24.76   24.95
ISP      6.200%   0.195   24.68   24.88
ISF      6.380%   0.345   24.61   24.96
INZ      7.200%   0.390   25.17   25.56
            
AEH      6.38%   0.345   24.61   24.95
AED      6.50%   0.352   24.91   25.26
AEB      4%   0.216   22.54   22.76
            
DXB      6.55%   0.395   22.38   22.77
DTK      7.60%   0.463   23.44   23.9
DKT      8.05%   0.265   24.08   24.34



Stocks like RBS PRH/INZ/BCS PRA/BCS PRD/NWPRC seem excellent value.. Most are going ex-div soon.

Please correct me if you find something wrong.

Good luck

Re: USD prefs

Posted: November 14th, 2016, 9:57 pm
by Wizard
I used to run my RBSG (before call) unhedged, but with the pound where it is now I think I would want some cover for a recovery in Sterling. Would the hedging costs eat up much of the yield on those prefs?

Terry.

Re: USD prefs

Posted: November 15th, 2016, 11:27 am
by hind
If you use FX futures then cost is difference between the libors and dealing charges, spreads every 3 months