RE: Attractive Yield11 Dec 2023 10:11
I have quite a few of these myself but there is a cloud on the horizon in 2025. As I remember, in 2025 these preference shares cannot be included in Aviva’s tier one capital and therefore there will be pressure to replace them or buy them out. What such terms would be anyone could guess but given the past debacle I can’t think we would leave us worse off. Could be a loan stock offering a yield similar to what we earn today? ( this is what Lloyds bank did a few years ago which was great until they cancelled the loan stick a few years later at an unfair rate to the holders.
I am optimistic in that given the past debacle any buy out will be fair and therefore we should enjoy the returns for now