Laughton wrote:Given the speed with which the FCA usually/historically operate though what danger do you see that PF won't make it through to September when the 21s (are due to) mature?
The price of the shares and the 23's suggest the market thinks these are safe enough. The market cap is £480m after the news so that's a lot of shareholder capital to chew through before the bonds become exposed
I wonder whether PFG will offer bondholders of the 21's the option to roll the issue into something new rather than let it mature.
PFG currently has a CET1 ratio of 34.5% and £145m headroom based on the current balance sheet but it might feel it prudent to roll perhaps half of the current issue? The other thing is it is reducing the exposure in CCD by lending less month on month so that's going to help improve their CET1 further.
I have a small amount totalling just over 1% of my portfolio across the two issues. I'm not too worried (yet) because if the market thought there were real risks here the 23s would be trading at 75p not 91p.
I find the law of the land poor as I believe group companies should have to stand by the actions of their subsidiaries, however in this case I find myself the potential beneficiary of a law I don't approve of! I'm not sure how I feel about that. Relieved it seems.