Leeds Building Society PIBS

[Jwdool]

The Leeds have announced a sharp jump in profits this morning for the fear 2022. Profits have come in at 161.9m v 120.2m for 2021. Their gross mortgage lending has also increased to £5bn from £4.4bn in 2021.

The 13.375% PIBS are trading at around 7.5% yield, but are difficult to buy given they do not settle in CREST, which is likely to explain the extra 0.5% return relative to their peer group.

[hiriskpaul]

They are difficult to sell as well!

HL no longer allow purchases, but I hold a few and cannot get an online price - not even for the minimum amount of 1k nominal.

I wonder whether the high coupon might be putting off some investors. BOI, also on 13.375% is similarly priced.

ps, Skipton 12.875% is similar, non-Crest and is on an ever higher yield. Again, I cannot get an online sell price.

[Jwdool]

I suspect the CREST issue feeds into the RSP, i.e. you can't trade it online unless it is CRESTable. The BoI issue is tradeable online, not sure why there is a premium on these, given the pricing of other similar instruments. There are not many true perpetuals around, so given the trajectory of rates implied by the yield curve, these instruments are great value.