HALIFAX 12% PERPETUAL SUB BONDS GB0000395094

I'm interested to know people's opinion of this bond. It's yielding almost 9% but the spread is very wide. HL is quoting 120 sell/149 buy.

Comments

  • I have some of these - but I didn't pay 149p

    A couple of things to note.

    1. You have to buy a minimum of £50,000 nominal
    2. That might be the running yield but you have to bear in mind that this bond is callable in 2022 (if my memory and notes are correct). If you purchase at 149 and it gets called in 2022 then the YTM to call date is negative.

    Hope I've got that right and that it helps - no doubt someone will correct me if I'm wrong.
  • Thanks for that. I was fooled by the word "perpetual" and didn't realise they had a call date.
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