Thursday, May 28, 2009
Sorry, runoutacash at the mo!
Investor's Chronicle: Bradford & Bingley defaults on Pibs interest
The price of Bradford & Bingley's perpetual subordinated bonds (PSBs) has been discounting such an event for months, but it's still a shock when it happens. The government-owned lender has said it will not make the July payment on £50m worth of 11.25 per cent PSBs. Interest on this instrument is cumulative, so it's possible that investors will get at least some of their money eventually. The lending business of the former mutual - the savings part was sold to Spain's Santander - is in wind-down mode. Its £40bn mortgage book will be progressively run-off, and once that process is complete, it is the company's intention to start repaying creditors
Posted by alan @ 05:07 PM (470 views) Add Comment
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. little professor said...
Makes sense really. If B&B had been allowed to go under, the bondholders would likely have lost everything. Just because the bank got rescued by the taxpayer, doesn't mean the bondholders shouldn't take a hit