{"id":48716,"date":"2019-09-30T07:19:41","date_gmt":"2019-09-30T12:19:41","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48716"},"modified":"2019-09-30T07:19:44","modified_gmt":"2019-09-30T12:19:44","slug":"metro-bank-teeters-after-bond-sale-fails-shares-collapsed-95","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48716","title":{"rendered":"Metro Bank Teeters after Bond Sale Fails. Shares Collapsed 95%"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/wolfstreet.com\/2019\/09\/27\/metro-bank-teeters-after-bond-sale-fails-shares-collapsed-95-since-2018\/\">Metro Bank Teeters after Bond Sale Fails. Shares Collapsed 95% <\/a><\/h3>\n\n\n\n<p><strong>Hedge-fund manager Steven Cohen and Michael Bloomberg are among those ruing the day they bought the crushed shares of the UK bank touted as a \u201cbargain.\u201d<\/strong><\/p>\n\n\n\n<p>Even by its own recent standards, Metro Bank has had a torrid week. On Monday, shares of the British retail bank tumbled 5%, on Tuesday, 25%, on Wednesday, 5%, and on Thursday, 4.5%, before staging a brief comeback in the final hours of trading on Friday, to end the week 35% lower. By Friday morning, it was the second most-shorted stock on the FTSE all shares index, behind the&nbsp;<a href=\"https:\/\/wolfstreet.com\/2019\/09\/23\/thomas-cook-collapses-up-to-600000-travelers-stranded-in-hotel-airline-chaos-triggers-biggest-peacetime-repatriation-in-uk-history\/\" target=\"_blank\" rel=\"noreferrer noopener\">collapsed travel &amp; vacation-giant Thomas Cook<\/a>.<\/p>\n\n\n\n<p>The main trigger for this week\u2019s rout was the bank\u2019s failure on Monday to raise a much-needed \u00a3250 million by issuing non-preferred bonds that deeply skeptical investors spurned. Despite trying to lure buyers with an interest rate of 7.5%, double the rate of similar offerings, Metro only attracted \u00a3175 million worth of orders, prompting the embattled lender to pull the plug on the bond sale.<\/p>\n\n\n\n<p>\u201cFailure to get enough support for a product that is yielding 7.5% is quite remarkable when you consider how investors are struggling to find generous levels of income in the current market,\u201d&nbsp;<a href=\"https:\/\/www.theguardian.com\/business\/2019\/sep\/24\/metro-bank-shares-plunge-after-investors-snub-200m-bond-sale\">said<\/a>&nbsp;Russ Mould, the investment director of AJ Bell. \u201cIt suggests that investors don\u2019t trust the bank or they believe the 7.5% yield is simply not high enough to compensate for the risks of owning such a product.\u201d<\/p>\n\n\n\n<p>Metro Bank opened for business in 2010, becoming Britain\u2019s first new high street bank in over 100 years. One of a handful of so-called \u201cChallenger Banks\u201d \u2014 new retail lenders created after the crisis to provide a little more banking competition in a country where the five biggest banks\u00a0<a href=\"https:\/\/www.statista.com\/statistics\/387098\/uk-banks-current-account-market-share\/\">control a staggering 85% of the market<\/a>\u00a0\u2014 Metro Bank proved particularly adept at luring disillusioned clients from the big banks.<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Metro Bank Teeters after Bond Sale Fails. Shares Collapsed 95% Hedge-fund manager Steven Cohen and Michael Bloomberg are among those ruing the day they bought the crushed shares of the UK bank touted as a \u201cbargain.\u201d Even by its own recent standards, Metro Bank has had a torrid week. On Monday, shares of the British [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[52,27261,27230,4255],"class_list":["post-48716","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank","tag-metro-bank","tag-nick-corbishley","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48716"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48716\/revisions"}],"predecessor-version":[{"id":48717,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48716\/revisions\/48717"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}