Anyone got any idea why these have collapsed suddenly?
Cannot see any particular reason why!
REA has issued a batch of loan notes which are due to start trading imminently. They pay a rate of interest more or less in line with the dividend yield on the prefs at the current share price but rank ahead of the prefs in the capital hierarchy. I suspect that some large investors might be switching from prefs to the notes to reduce risk.
The result of this is that the prefs are now trading at below par and offering a yield >9%. For cumulative prefs that seems to me to be quite attractive and I have today bought a small holding at 96.something pence.
I posted to this effect on TMF today and a subdued discussion has started in consequence.
T
