Post BBYB - what to do with the proceeds ?!

Shame they had to cease to be ...

Would like to have some suggestions as to where to re-invest .. any ideas ??

I am up to my eyeballs in One Savings Bank but, as pointed out on another post, there are a couple of reasonable reasons (would that fail "Just a Minute" being a repetition of "reason" - I suspect so - it's probably against some rule of English grammar) that1SBA and 1SBB might be considered

I have bought some LLPE after comment on the Lemon Fool forum


LLPE are perpetual, but redeemable. If they don't redeem in 2024, they have the option of doing so on each 5 year anniversary. They don't have to redeem all of the prefs either, but I think the chances of partial redemption are very unlikely. The Lloyds prefs don't count as CET1 and I am reasonably confident they will want to redeem the whole lot at the first opportunity they have in 2024, but at present I would be happier if they don't choose to redeem. There is a risk of an earlier Aviva style reduction of capital as well, but the downside is much lower with these than with the irredeemable prefs. The redemption option will dampen volatility, which is what I am looking for here in case I want out for some reason


If they are redeemed at par then the effective YTM by my calculation is about 4.1%

I have also bought some STAB as assuming they will redeem these at around the end of 2025/beginnng of 2026 as they won't count as regulatory capital after then, this still gives a "YTM" of around 4.7%

In both cases if they are not redeemed then the better



Sign In or Register to comment.