In the height of the financial crisis in 2008 I took two fairly sizeable punts one on Nationwide 7.25 at 73 and Principality 7% PIB buying at 53.
It's turned out v. well, although I cashed in early at 100 on the Nationwide but am still holding the Principality that are now 95 bid.
What I'm struggling with on the Principality is the whether they will call the PIB in 2020 or let it reset at the lower cpn and the impact on the price as that time approaches. The coupon resets at 3% +5 year Gilt (I believe) if it is not called. At the time of purchase the reset date was a long way off and I'd expected yields on the 5 year Gilt to have climbed since then. However, with the date coming ever closer and Gilt yields remaining low and the prospect of Principality of calling I am getting edgy.
Any knowledge/assistance on this PIB would be appreciated.