JohnEdwards wrote:hiriskpaul wrote:Padders72 wrote:
I think the majority would have been tendered and the tiny rump voted out of existence long before the £3 level was approached. I would have thought a £2 offer would have scooped up the vast majority of NWBD and as you say inflation is only going one way meaning a 175p offer may in hindsight look generous in a year or two. Just my 2p worth obv!
If they had offered 180 I would probably have tendered the lot.
I really can't see why you'd go for 180 and not 175. Even £2 would not attract me.
Could someone explain how the tiny rump could be voted out of existence after a successful higher tender? Surely all the remaining holders would vote against.
5% is not that exciting a yield. As stated earlier, I exited these on announcement of tender to invest elsewhere and have already more than doubled my money. Fluke? Perhaps, but tell me: how much chance there is of doubling your money in a few weeks with these? Halving your money maybe...
At current prices this is truly a risk tranche in most portfolios... 20-year duration... let's hope hodlers get lucky with Convexity and Greater Fools before something bad happens. What do people think of a likely 1% real yield by year end and possible yield curve inversion?