STAB v STAC What am I missing?

Just received my dividend from Stab. However there has been some weakness in the share price as the ordinary Standard Chartered have taken a beating. Probably to be expected.

Interestingly STAC have not received anything like the beating. Any ideas why?

Comments

  • The yields on both of these Standard Chartered Preference Shares, Ticker Codes STAB & STAC are the same rate at around 7%.
    You must be confused? (both yields have risen)
    See http://www.canaccordgenuity.com/en/cm/Our-Company/Fixed-Income/Fixed-Interest/
    Please explain further in greater detail
  • Shane,

    You are right. Need to clean my glasses. Incidentally that's a very good yield if you think the bank will keep payin the preference shares. Thanks.
  • Soundmoney,
    It's good that you raise the issue, as you say the yield is a reasonable 7%, but whether it compensates for the risk I am not sure. Canaccord Genuity have just today updated their PREF & PIBS listing
    STAB Yield 7.20% (recently gone higher)
    STAC Yield 6.97%
    Perhaps a major institution has been offloading their STAB holding?

    I already have a few LLPC (Yield 6.73%) and NWBD (6.60%), so I have, I think, sufficient undated banking securities. I need to review the insurance offerings to diversify further.
    I am wary of Standard Chartered because of it's China connections
  • Shaunm,

    Thanks for that.

    I have a slightly different view of China, I don't think it's having a hard landing. This mornings PMI figures for mainland China were encouraging, one swallow, I know.

    In fact I'm long on emerging market debt as well. Think emerging markets are turning with dollar softening. Thanks Janet Yellen.

    Will Standard chartered keep paying the divi on preferace shares? Well just looking volumes are much higher on Stab than Stac. So as you suggest perhaps a large seller. Perhaps their position is that they don't want the risk.
  • Soundmoney,
    When the yield is closer to 10%, and the risk therefore less than "sound", I probably take a small punt! "Unsound money" is when you can make material gains (or losses)!
    Ironic situation
  • Sure is but we do have the choice of keeping it all on deposit. No thanks.
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