Nationwide CCDS price slump ... what's going on?

[ResourceOgre]

On one hand, the FT markets column today leads with "...investors rush into bonds after 'cataclysmic' year" going on to predict $1tn inflows.

And on May 19 reports "Nationwide profits jump by nearly 40% on rising rates"

And yet, the price of the NBS Core Capital Deferred Shares, with target yield of 10.25% (NBS:LSE) has today slumped 6.57% to 110.25p

The spread from AJ Bell is very wide even for FI ... Sell 110 and Buy 126.

Granted it's illiquid, and non-retail, and this could represent a single trade.

Anybody got any ideas by way of explanation? I suppose I'll check when markets reopen.

[ResourceOgre]

Looked again..... It's nothing interesting happening. The current price is near the middle of the very wide spread. The low price on the day was I think an anomaly of low volume.

[Swanmore22]

Hi RO

I paid 117 this am for a small clip, 250 shares .
It is an add.

The bet is that the whole of the uk housing market does not collapse and drag Nationwide into bankruptcy.
It is a s/fwd as that

Regards

Swan

[hind]

That was a good price, getting quoted 108/128 ?

[Swanmore22]

Hind,
I use Cannacord for all my bond trading
You will pay a higher commission than the platforms but i have found this does not hurt returns as your broker more
often than not can get you better prices.
Swan

[air04]

Hind,
I use Cannacord for all my bond trading
You will pay a higher commission than the platforms but i have found this does not hurt returns as your broker more
often than not can get you better prices.
Swan

When I see https://www.canaccordgenuity.com/cgdire ... g/pricing/ , it does not seem more expensive than HL? Is the pricing £25 for bonds? Just wondering...

[GoSeigen]

Hind,
I use Cannacord for all my bond trading
You will pay a higher commission than the platforms but i have found this does not hurt returns as your broker more
often than not can get you better prices.
Swan

Canaccord. It might be worth waiting for more views.

We joined them around the time of the banking crises and they were useful at that time but unless I'm very much mistaken they closed their bond desk some five years ago and their bond dealing service ended up no better than anyone else. At the time their fees were much higher than competitors and bond spreads much tighter than during the crisis so as soon as our weird foreign-currency bonds matured we closed the account and moved to HL IIRC. However I think we had a special client account, maybe their standard offer was/is cheaper...

GS

[Swanmore22]

GS,
I have been using Cannacord and their predecessor Collins Stewart for a number of years
My broker is the same as when i started
Whilst commission is higher than platforms, my broker has plenty of experience and will "work" my orders, i.e he will broker the ticket
I can leave limits, discretion and contingent orders in full confidence and when trading in good size this is important.

We have traded through numerous "events" together and whilst my trading activity has slowed over the last few years we are in still in touch on a frequent basis.

I like AJ Bell phone dealing services, and I also used HL over the phone for some of the trickier stuff but i do not like their fill or kill policy.

As per current vogue in gilt market, "it"s horses for courses".

Re NWide CCDS, post BOI it is now my largest bond holding and I will be adding more on weakness.

Best Wishes,

Swan

[BondSquared]

Just bought a clip @115.50 / 8.87% - happy with the execution. Nice home for the BOI redemptions, given most alternatives have rallied since.

[GrahamPlatt]

What’s the ISIN for these?

[BondSquared]

What’s the ISIN for these?

GB00BBQ33664

[GrahamPlatt]

Thanks

[BondSquared]

Topped up small @114.50 / 8.95%.

I don't actually consider the CCDS great relative value compared to the Nationwide AT1s (which trade at 10%+ but are mostly off-bounds for UK retail investors), but at least the CCDS, which are traded in the institutional inter-dealer market and have an issue size of >£1bn, aren't subject to price squeezes from small retail buying like some of the more expensive Prefs/PIBS - the CCDS trade on a proper spread basis to gilts/swaps, so one can take advantage of the recent (ongoing) gilts sell-off.

Again great execution by AJ Bell via BMTF (Bloomberg). AJ Bell having connected to the major MTFs (Multilateral Trading Facilities, i.e. institutional inter-dealer trading platforms) is a true gamechanger for executing fixed income/sub/pref securities.

[spencerlewis]

Nationwide CCDS 10.25%
Can anyone tell me if it´s possible to buy less than 250 shares?