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Metro Bank

Gilts, bonds, and interest-bearing shares
Swanmore22
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Re: Metro Bank

#471805

Postby Swanmore22 » January 10th, 2022, 4:42 pm

Paul,

The online platforms use different settlement systems..Halifax is different to AJ Bell which is different to HL which is different to II..etc
Surely some bright fintech engineer can harmonise ?
This leads to "blind" decisions about what can be held..you can hold ctypto trading equities such as Argo but not a sub grade bond if it has to have a manual settlement.
Looks to me as if decisions are made not on product suitability but on how easy it is to settle investments.
When it comes to bonds that are non ORB/Mainstream then it is a case of calling the dealers/badgering someone savvy in the back office.

I buy Metro 5.5% at 68.25 today and HL show settle at 69.. nice but would rather they got it right !

Swan

hiriskpaul
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Re: Metro Bank

#471835

Postby hiriskpaul » January 10th, 2022, 6:59 pm

Swanmore22 wrote:Paul,

The online platforms use different settlement systems..Halifax is different to AJ Bell which is different to HL which is different to II..etc
Surely some bright fintech engineer can harmonise ?
This leads to "blind" decisions about what can be held..you can hold ctypto trading equities such as Argo but not a sub grade bond if it has to have a manual settlement.
Looks to me as if decisions are made not on product suitability but on how easy it is to settle investments.
When it comes to bonds that are non ORB/Mainstream then it is a case of calling the dealers/badgering someone savvy in the back office.

I buy Metro 5.5% at 68.25 today and HL show settle at 69.. nice but would rather they got it right !

Swan

Yes, they are all different but of the cheap retail brokers I had previously found HL to offer the widest choice for bonds, which is one of the reason I chose to concentrate our SIPPs with them. They have started to cut down though, with a number of PIBS and other issues no longer available. I stopped using my AJBell account a few years ago. Until now they did not seem to offer anything I could not get at HL and they annoyed me by introducing a custody charge on their dealing account - HL have not so far. I always felt I got better service at HL as well, for example HL have previously allowed me to buy before I sell in order to raise money for settlement. I have done this a few times when it was unclear what price and availability was like on institutional issues and I did not want to trade before I had a firm quote.

I will leave the 9.5%. I don't really want them outside a tax shelter due to the income tax hit on that high coupon. The running yield on the 5.5% is high, but not as much as the 9.5% and there is more tax free upside potential in the 5.5%. The 5.5% are of course lower down the pecking order.

Swanmore22
Posts: 21
Joined: December 15th, 2019, 1:30 pm
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Re: Metro Bank

#472320

Postby Swanmore22 » January 12th, 2022, 10:50 am

Paul,

The reason behind migrating some of the family ISA"s to AJ from HL was because HL no longer accommodate monthly investment
from cash on the accnt, it has to be done via monthly debit.
This is a problem for drip feeding into new investments

Have little action left in bank subs..BOI and Nationwide ccds are the two main issues left on my books

I am looking at China High Yield as a new play
Fidelity have a fund that i am monitoring.
:https://www.fidelity.co.uk/factsheet-data/factsheet/LU2184871734-china-high-yield-w-mincomeg-gbp-hdgd/dividends

Will post a new thread if i buy

Regards

Swan

88V8
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Re: Metro Bank

#472341

Postby 88V8 » January 12th, 2022, 11:54 am

Just bought the 5.5 (ticker 44VG) at 68 and change, through a nice lady who sounded as if she was in the ii broom cupboard.
Didn't ask about the 9.5.

Also followed Swan's idea and bought some of the ords in my ISA.

Now we await the next suitor.

V8

hiriskpaul
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Re: Metro Bank

#472412

Postby hiriskpaul » January 12th, 2022, 3:26 pm

88V8 wrote:Just bought the 5.5 (ticker 44VG) at 68 and change, through a nice lady who sounded as if she was in the ii broom cupboard.
Didn't ask about the 9.5.

Also followed Swan's idea and bought some of the ords in my ISA.

Now we await the next suitor.

V8

Very brave as Sir Humphrey would say. Not becoming a YOLO investor I hope?

hiriskpaul
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Re: Metro Bank

#472446

Postby hiriskpaul » January 12th, 2022, 4:45 pm

hiriskpaul wrote:
88V8 wrote:Just bought the 5.5 (ticker 44VG) at 68 and change, through a nice lady who sounded as if she was in the ii broom cupboard.
Didn't ask about the 9.5.

Also followed Swan's idea and bought some of the ords in my ISA.

Now we await the next suitor.

V8

Very brave as Sir Humphrey would say. Not becoming a YOLO investor I hope?

More seriously though, have there been previous occasions, following a banking mishap, when it was better to go into the equity instead of the debt or prefs? I cannot actually think of any. The closest I can think of is that buying the lower tier debt with the Co-op Bank (and getting Co-op Group bonds) worked out much better than being in the less risky tier 2 and getting Co-op Bank debt and equity. I think the difference there though was that the lower tier stuff was retail, the T2 institutional and OBR did a remarkable job for the retail holders.

88V8
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Re: Metro Bank

#472486

Postby 88V8 » January 12th, 2022, 6:08 pm

hiriskpaul wrote:
hiriskpaul wrote:
88V8 wrote:Just bought the 5.5 (ticker 44VG) at 68 and change....
Also followed Swan's idea and bought some of the ords in my ISA.

Very brave as Sir Humphrey would say. Not becoming a YOLO investor I hope?

More seriously though, have there been previous occasions, following a banking mishap, when it was better to go into the equity instead of the debt or prefs? I cannot actually think of any. The closest I can think of is that buying the lower tier debt with the Co-op Bank (and getting Co-op Group bonds) worked out much better than being in the less risky tier 2 and getting Co-op Bank debt and equity. I think the difference there though was that the lower tier stuff was retail, the T2 institutional and OBR did a remarkable job for the retail holders.

Well perhaps a little yolo, and cash kicking around looking for a home. But it wasn't a lot of ords ;)
I could have bought the senior but the overall wodge would have been disproportionate for my portfolio.

I hope that the glacial rises in rate will lift all banks, and Metro in particular will avoid running aground again.
In any event, had it not been for their little mishap we would likely not be buying their bonds at all....

V8


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