according to prospectus all ADR preferreds are pari passu:
"unless otherwise specified in the resolutions of the Board of Directors or a Committee establishing any series of Dollar Preference Shares and set forth in the related Prospectus Supplement, will rank in all respects pari passu with the Dollar Preference Shares of each other series and any other shares of the Company which are expressed to rank equally therewith."
...and RBS Investor relations says there is NO DIFFERENCE between the Hs, Ls or any newer preferred. IMO these will all be treated equally -- If RBS is nationalized and/or you have to sue to recover, what we all will get will be pennies on the dollar. Whether this is at the bottom of the debt ladder or the top of the equity makes little difference.
I personally would not count on language that seems vaguely contradictory (especially as the newer preferreds say they are equal in all ways to the older).
Do you have an email from IR, stating that all are equal,that you could share?
I would be very interested to see if they have now a different interpretation that what they have shared in the past...
I agree with you that all of them might be worthless under some scenarios, but the additional protection and wording of the H and some older preferreds should warrant a premium not a discount since they are higher up on the ladder.
Well, there is some difference since some are classified for acct purposes as debt and some as equity. Personally I would not rely on investor relations to interpret multiple legal documents. I have made good money in the past off some subtle legal differences that others overlooked.
However, in this case I agree it is splitting hairs. I believe the pfds will likely all be treated similarly, whether it be paying dividends or discontinuing them. I believe the magnitude of the situation makes dividends beyond any the govt receives up thru conversion as unlikely. I also believe nationalization is unlikely - at this point. We will all get to see!