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The Royal Bank of Scotland Group plc Message Board

  • roulloullou roulloullou Oct 17, 2012 8:22 AM Flag

    difference between rbs L and N

    rbs-n dividend was suspended from 4/20/2010 to 5/4/2012 and rbs-l never was. Anyone knows why?

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    • Series F - H and L are carried as "Debt". Series N, along some others, are carried as "Equity" and payment for those is discretionary with the Board of Directors.

      • 1 Reply to ynot966813
      • Indeed.I have held the L and the N series for a long time. Indeed the L kept paying while the N (and a lot of others) did not for two years. What is interesting is the price disparity between the two. The L series has a lower coupon than the N, and the L trades for about a point or two less than the N. So, Mr. Market is saying "I would rather accept a slightly lower coupon with some assurance that I will get paid than own the higher coupon with some doubt about it being paid". The market currently prefers the L series with some assurance that it will be paid than the higher coupon which could be suspended again at any time. Like I said, I own them both and by the way, they both qualify for the 15% maximum tax rate.

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