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Prudential PLC Comes a Calling

As noted by PTrader earlier today Prudential PLC (PUK) has come a calling.

The company is calling the 6.50% (PUK-A) and 6.75% (PUK-) issues effective 12/23/2021.

The issues can be see here.

Here is the company press release

Interestingly the company had announced on 9/19/2021 that they would be calling high yield debt–while not specific as to what issues would be called, holders could have bailed at this time.

Needless to say holders of these issues are seeing red today with the PUK-A issue off $1.24 and the PUK- issue off $1.13.

5 thoughts on “Prudential PLC Comes a Calling”

  1. I have held this, courtesy of my mother, since 2005 when inherited it. I added a few shares in another account. It was a great cash cow for nearly 17 years. Sorry to see it go, but knew it was coming eventually!

  2. I believe 2010-2017 there were many opportunities to buy > 6% for investment grade, and of course the covid dip. Selling several years ago and replacing with another investment grade > 6% presented many opportunities for me personally. I personally owned this one several times and was in and out, and juiced my returns.

    Buy it and forget it works as well if you don’t need the money, and just pass it on as inheritance.

  3. I’ve held this issue for a long time, and while I knew the call risk was high after the Jackson speration and subsequent financing events, I let the issue ride just in case they left the preferred alone. In the past I’ve had issues I expected to get called remain outstanding for unforseen reasons, so as long as the premium isn’t crazy high I’ll leave it just in case. Particularly during periods like this where the reinvestment alternatives are borderline non-existent.

    1. My style is to pocket the 2 yrs worth of dividends and put into other pinned to par, or potential call investments. I set aside a fair amount of cash for trading out high -ytc for low -ytc that should be called. Some examples are psa-e, mnr-c, axs-e, enj, uepep, etc. These were great to pick up in the last month or two on their dips.

    2. NCSI-there are always 2 ways to look at it. You got an extraordinary return for many years–when they could have called it some time ago. Or you could have sold years ago for a meager coupon replacement.

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